Embed Size (px)
Citation preview
Calhoun: The NPS Institutional Archive
Theses and Dissertations Thesis Collection
1993
Total Quality Management in construction.
Miller, Charles C.
http://hdl.handle.net/10945/24240
TOTAL QUALITY MANAGEMENT IN CONSTRUCTION
BY
CHARLES C. MILLER
A REPORT PRESENTED TO THE GRADUATE COMMITTEEOF THE DEPARTMENT OF CIVIL ENGINEERING INPARTIAL FULFILLMENT OF THE REQUIREMENTSFOR THE DEGREE OF MASTER OF ENGINEERING
UNIVERSITY OF FLORIDA
SUMMER 1993
TOTAL QUALITY MANAGEMENT IN CONSTRUCTION
BY
CHARLES C. MILLER
f
A REPORT PRESENTED TO THE GRADUATE COMMITTEEOF THE DEPARTMENT OF CIVIL ENGINEERING INPARTIAL FULFILLMENT OF THE REQUIREMENTSFOR THE DEGREE OF MASTER OF ENGINEERING
UNIVERSITY OF FLORIDA
SUMMER 1993
TABLE OF CONTENTS
List of Figures iii
Introduction 1
Chapter 1 - Defining Total Quality Management 4
Philosophy 4
The Team Concept 2
Quality Improvement Process 27
Chapter 2 - Total Quality Management Principles 40
Deming's Fourteen Points 40
Diseases and Obstacles 69
Quality Principles 75
Chapter 3 - Total Quality Management Implementation 83
Quality in Construction 83
Quality Control Techniques 101
Statistical Quality Control 111
Malcolm Baldrige National Quality Award 117
Summary 124
References 134
li
LIST OF FIGURES
Figure 1 The Deming chain reaction. 6
Figure 2 Deming' s view of production as a system. 8
Figure 3 Mansir and Schacht ' s view of CIP elements. 13
Figure 4 The Joiner triangle for successful 22organizations
.
Figure 5 The Parsons Quality Improvement Process 31
organization.
Figure 6 Parson's work process model. 37
Figure 7 The Deming Cycle. 47
Figure 8 Scherkenbach' s Process of Continuous 48Improvement
.
Figure 9 Operationally define the opportunity. 49
Figure 10 Operationally define the theory. 50
Figure 11 Test the theory. 51
Figure 12 Observe the results. 52
Figure 13 Act on the opportunity. 53
Figure 14 Fear affects nine other points. 56
Figure 15 Typical path of frustration. 59
Figure 16 U.S. and Japanese approaches to work 60
standards
.
Figure 17 Killing the messenger. 64
Figure 18 Schematic plan of organization for quality 68
and productivity.
Figure 19 Mansir and Schacht 's holistic CIP view. 76
Figure 20 Project team organization. 85
Figure 21 Field organization for construction. 90
Figure 22 Basic elements of quality. 99
iii
LIST OF FIGURES
Figure 23 Useful charts for presenting data and 102understanding processes.
Figure 24 Cause-and-ef f ect diagram. 103
Figure 25 Cause-and- effect diagram for wobbling. 103
Figure 26 Detailed flow chart of supplies receiving 104process
.
Figure 27 Failure occurrence distribution. 105
Figure 28 Pareto diagram for process defects. 107
Figure 29 Run chart for documenting travel time. 107
Figure 30 Various plot patterns in scatter diagrams. 108
Figure 31 Control chart for test of uniformity of 109wheels
.
Figure 32 Control charts for mean and standard 112deviation.
Figure 33 Risk and uncertainty in random sampling. 115
Figure 34 Customer Interaction Venn Diagram. 118
IV
TOTAL QUALITY MANAGEMENT IN CONSTRUCTION
The principles of Total Quality Management (TQM)
provide a means for achieving quality in the construction
process. The improvement of quality requires that every
member of the organization embrace the principles of
continuous improvement. Total Quality Management is a
customer-oriented approach that stresses the effective use
of people. Total Quality Management also emphasizes the
application of quantitative methods and process improvement
techniques to continually improve products and services.
Total Quality Management requires a cultural change in
the organization. The leadership and management of the
organization must demonstrate a sincere commitment to
continuous improvement. They must foster a working
environment which capitalizes on the creativity and
ingenuity of employees. The TQM organization focuses on the
needs and expectations of customers, both internal and
external. Emphasis is placed on prevention of the causes of
defects rather than the correction of defects. The
organization must foster a long-term relationship with
suppliers based on mutual trust and respect. Total Quality
Management encourages innovation and application of new
technology and procedures to enhance quality improvement.
The process of continuous improvement applies to all aspects
of the organization including administrative, engineering
and production functions.
Project teams are instrumental in the improvement of
quality, productivity and processes. They focus on quality
improvement of processes and problem solving, and instill
quality leadership principles throughout the organization.
The training and education of employees is also a key factor
to successful quality improvement.
Quality in the construction process is based on several
fundamental concepts. These concepts include the definition
and assignment of responsibilities, the importance of
teamwork, understanding requirements and expectations, and
principles of good communication. As Western organizations
place more emphasis on process control techniques, there is
a trend toward statistical quality control in the
construction industry.
The implementation of Total Quality Management involves
the application of the principles of continuous improvement.
These principles include constancy of purpose, commitment to
quality, customer focus and involvement, process
orientation, continuous improvement, system-centered
management, investment in knowledge, teamwork, conservation
of human resources, total involvement and perpetual
commitment
.
The Malcolm Baldrige National Quality Award was
established to promote quality awareness and to recognize
the contributions of U.S. business to the nation's economic
growth. The award recognizes continuous quality improvement
through statistical quality control, a prevention style of
management and a systems approach for data collection and
customer feedback.
Top management must spearhead the movement toward
continuous improvement and actively participate in the TQM
process. Former Vice President Dan Quayle said, "President
Bush believes we must establish a firm commitment to Total
Quality Management and the principle of continuous quality
improvement . . . the taxpayers have every right to expect
and demand high quality — and that is what we must deliver."
All organizations must embrace the principles of Total
Quality Management to survive in today's highly competitive
environment. Through commitment to continuous quality
improvement, designers, construction managers and
constructors can design and build facilities that meet and
exceed the expectations of customers.
CHAPTER 1
DEFINING TOTAL QUALITY MANAGEMENT
PHILOSOPHY
The new approach to management allows organizations to
keep pace with rapidly changing conditions. Japanese
companies have successfully applied Total Quality Management
principles while American companies are only starting to put
them into practice.
The decline of American companies has been attributed
to poor management practices and management seeking short-
term profits and good performance. 1 Dr. w. Edwards Deming
argues that "a better way to serve stockholders would be to
stay in business with constant improvement of quality of
product and service, thus to decrease costs, capture
markets, provide jobs and increase dividends." 2
Deming suggests that because a production system is
stable, improvement of quality is the responsibility of
management. 3 Management must also recognize the distinction
between a stable and unstable system. 4 A stable system is
:Mary Walton, The Deming Management Method (New York:The Putnam Publishing Group, 1986), p. xi
.
2 Ibid.
jW. Edwards Deming, Out of Crisis (Cambridge:Massachusetts Institute of Technology Center for AdvancedEngineering Study, 1986), p. 1.
4Walton, p. xii.
achieved "by removal, one by one, of special causes of
trouble, best detected by statistical signal.
"
b
Deming questioned twenty- two production workers as to
why productivity increases as quality improves. The
production workers attributed the increase in productivity
to "less rework" and "not so much waste". 6 Deming states
that "quality to the production worker means that his
performance satisfies him, provides to him pride of
workmanship.
"
7
The improvement of quality reduces waste in terms of
both man-hours and machine- time leading to production of
better products and services. 8 This process results in a
chain reaction of "lower costs, better competitive position,
happier people on the job, jobs and more jobs." 9
5 Ibid.
6Deming, p. 1.
7 Ibid.
8 Ibid., p. 2.
9 Ibid.
Capture the
market ui th
bet ter qual i tgand louer price
Costs decrease because
of less reuork, (euer mis-
takes, feuer delaqs, snaqs
;
better use of machine- t i me
and mater i al
s
Product 1 vi tg
1 mproves
Provide jobs
and more |obsI
Figure 1 The Deming chain reaction.
Deming describes the awakening of Japanese management
to the positive relationship between quality and
productivity. In the late 1940s, Japanese engineers found
that productivity does improve as variation is reduced. 11
Figure 1 above shows the chain reaction that "became
engraved in Japan as a way of life." 11 Since Japanese
management embraced this chain reaction in the early 1950s,
10 Ibid., p. 3
11 Ibid.
the Japanese have aggressively pursued the common goal of
improving quality.
Deming views the concept of production as a system.
The flow chart shown in figure 2 below illustrates how
quality improvement touches every aspect of the production
system from procurement of materials to the consumer or
customer. 12 This system orientation of production is
equally applicable to any manufacturing, service or
construction organization. Note that Deming includes
construction in his list of service organizations. 13
Deming explains that it is necessary to establish with
suppliers "a long-term relationship of loyalty and trust to
improve the quality of incoming materials and to decrease
12 Ibid., p. 4.
13 Ibid., p. 184
Suppl iers of
mater i als and
pqui pment Receipt and
mater i als
Design
and
redesign
Consumer
research
\
Production, assemblu, inspection
/Tests of processes,
machines, methods,
costs
Figure 2 Deming's view of production as a system.
costs." 14 However, the most important part of the
production system is the consumer or customer. Quality
improvement should therefore be focused on customer
requirements." Again, this philosophy is applicable not
only to manufacturing and service industries but also the
construction industry as well.
"' 4 Ibid., pp. 4-5
15 Ibid., p. 5.
Deming asserts that quality is based upon the intent of
management. Engineers and others translate this intent into
plans, specifications, tests and production."' 6 Deming
attributes the transformation of Japanese industry and their
economic success to the above principles, the chain reaction
shown in figure 1 and the production system flow chart shown
in figure 2. 17
Deming explains that management in Japan sought quality
improvement with constancy of purpose and total commitment.
Japanese engineers learned valuable statistical methods to
identify the causes of variation. They also learned that
continuous improvement of processes is crucial to quality
improvement
.
18
Deming contends that in most governmental services
there is no market to capture. 19 Rather than capturing the
market, government agencies should deliver services required
by law or regulation in an economical manner. 20 Deming
states that "continual improvement in government service
would earn appreciation of the American public and would
hold jobs in the service, and help industry to create more
16 lbid.
17 Ibid.
18 Ibid.
19 Ibid., p. 6
20 Ibid.
jobs." zl Along with economic delivery of services,
government agencies should strive to deliver services which
meet the quality expectations of their customers.
Deming suggests that measures of productivity do not
lead to improvement in productivity.' 2 He compares measures
of productivity to statistics on accidents. The statistics
"tell you all about the number of accidents in the home, on
the road and at the work place, but they do not tell you how
to reduce the frequency of accidents." 23 Nevertheless,
productivity studies can be useful to determine if
activities are consistent with organizational goals and the
cost of activities. 24
The answer to the question of how to improve quality
and productivity is not "by everyone doing their best." 25
Everyone must have knowledge of how to achieve a "system of
improvement" in addition to putting forth their best
efforts. 26 The system of improvement includes Deming *s
"Fourteen Points" and elimination of the "Seven Deadly
Diseases and Obstacles" 27
21 Ibid.
22 Ibid., p. 15.
23 Ibid.
24 Ibid., p. 16.
25Walton, p. 32
26 lbid.
27 Ibid.
10
Deming's Fourteen Points of management foster
continuous improvement and a new attitude toward work.
Brian E. Mansir and Nicholas R. Schacht portray Deming's
management concepts in terms of a "Continuous Improvement
Process" model. They describe the Continuous Improvement
Process (CIP) as "a means by which an organization
creates and sustains a culture of continuous improvement."^ 8
They further describe the process:
The organization deliberately seeks to create apositive and dynamic working environment, fosterteamwork, apply quantitative methods and analyticaltechniques and tap the creativity and ingenuity of allits people. Collective effort is focused to betterunderstand and meet internal and external customerneeds and to continuously increase customersatisfaction. 29
Mansir and Schacht claim that organizations employing the
Continuous Improvement Process can significantly improve
quality of their products and services, increase
productivity and reduce costs. 30
The Continuous Improvement Process involves the total
organization in working toward improvement
.
3: Top
management must foster a "cultural environment" which
28Brian E. Mansir and Nicholas R. Schacht, AnIntroduction to the Continuous Improvement Process:Principles & Practices (Falls Church, Virginia: EducationalServices Institute, 1990) , p. v.
29 Ibid.
30 Ibid.
31 Ibid., p. 1-8.
11
encourages continuous improvement. 32 Mansir and Schacht
contend that "the process involves every member of the
organization, applies to every activity and focuses on
creating and managing change to assure success and
survival ." 33
Top management directs the improvement process by
creating an environment which inspires creativity, pride,
teamwork and knowledge enrichment. 34 Management must
establish a unified effort toward quality improvement at
every level in the organization. The improvement process is
directed toward achievement of organizational goals by
continuous improvement of performance in areas such as
quality, cost, schedule, manpower development, new product
development and most importantly customer satisfaction. 3 '
Mansir and Schacht describe a hierarchical relationship
between the key elements of the Continuous Improvement
Process. Figure 3 depicts the interrelationships among the
CIP elements. 36 The organization's philosophy is comprised
of its purpose, vision and theory. 37 Next, management
principles include basic concepts, rules and assumptions
32 Ibid.
"Ibid.
34 Ibid.
35 Ibid.
36 Ibid., p. 1-12.
"Ibid., p. 1-11.
12
Techniques and tools
Pract ices
Pr 1 ncipl es
Phi losophu,
(purpose,
vision,
theoru )
Figure 3 Mansir and Schacht's view of CIP elements.
which are the foundation for continuous improvement
practices. 38 The organization's practices are behavior and
actions based on established continuous improvement
principles. 39 Lastly, techniques and tools are the methods
and procedures used for attainment of CIP goals. 40
38lbid
39lbid
40 Ibid., pp. 1-11 - 1-12.
13
Mansir and Schacht define an organization's philosophy
as "its shared system of values, motivating principles and
concepts." 11 A competitive organization today consistently
evaluates its philosophy to ensure that it advances the
principles of continuous improvement and customer
satisfaction. 42 Mansir and Schacht describe five components
of an organization's philosophy. First, the organization's
philosophy is based on an underlying theory "that defines
the need for collective action." 43 Second, the
organization's members must share a common purpose. Third,
the organization's philosophy contains "a vision that
focuses their actions on a desired transformation." 44
Fourth, the organization prescribes a set of values which
provides the groundwork for acceptable behavior. Lastly, an
organization establishes policies which outline the basic
principles and requirements of the organization's
philosophy.
The philosophy of the CIP organization is based on some
underlying theory which "crystallizes the need for
improvement .
"
4S Mansir and Schacht suggest that survival of
the organization is the basis for many underlying
41 Ibid., p. 2-1
42 Ibid.
43 Ibid.
44 Ibid., pp. 2-1 - 2-2
45 Ibid., p. 2-2
14
theories. ^ Specifically, they propose a basic theory that
may be applicable to many organizations whether they are a
commercial business such as a construction company, a
defense industry or a Government organization:
"Organizations that understand the needs of their customers
and that continuously improve their processes, products and
services accordingly will survive, and the others will cease
to be relevant." 47
The CIP organization must establish a clear statement
of purpose to unite and focus each of its members. This
explanation of purpose is equally important for both public
and private sector organizations. 48 Deming's first of his
Fourteen Points states, "Create constancy of purpose toward
improvement of product and service, with the aim to become
competitive and to stay in business and to provide jobs." 49
Mansir and Schacht provide an example of a statement of
purpose:
Our purpose is to ensure long-term security foreach stakeholder through continuously improvingcustomer satisfaction and competitive position,increasing market share, employment opportunities andjob security and providing a competitive return onlong-term investments. 50
46 Ibid.
47 lbid.
48 Ibid., p. 2-3
49Deming, p. 23
scMansir and Schacht, p. 2-4
15
The organization's philosophy contains a shared vision
which guides the thinking and actions of its members." 1 The
organization's vision formulates "a desired future state"
and "reflects an ideal". 2 For instance, the Harris
Government Systems Sector (GSS) vision states:
We want GSS to be the premier supplier, i.e., thesupplier of choice in competitive procurement in eachof our market areas as visualized by our customers, ouremployees and the corporation. This reflects our imageas well as the quality of our offering and product. 5
The organization's values comprise not only legal
principles but also ethical considerations as well.""' These
priorities are communicated through clear statements and
management actions. 5' They set the stage for how the
organization functions and the behavioral expectations of
its members.
51 Ibid., p. 2-5.
52 Ibid., p. 2-5 - 2-6
"Ibid., p. 2-6.
54 lbid.
B5Tbid
16
The policies of the organization should reflect the
fundamental principles of its philosophy and the concept of
continuous improvement.^ For example, the Ralph M. Parsons
Company quality policy reads:
We are committed to performing quality work forour clients. We will do this as a company and asindividuals by completely understanding therequirements we have to meet and by meeting theserequirements the first time.- 7
Mansir and Schacht suggest that a separate policy
statement should review the process of continuous
improvement .
"
! They provide an example of a policy
statement by Harris Government Systems Sector (GSS) which
states, "It is the policy of GSS to continuously improve
performance in every area of our business. Continuous
improvement shall be a vital part of our strategic
planning. . . ." 59
The Department of the Navy renamed Total Quality
Management to reflect the Navy's traditional emphasis on
leadership. The new name for the Navy's approach is Total
Quality Leadership (TQL) . The Chief of Naval Operations,
56 Ibid., p. 2-7.
"The Ralph M. Parsons Company, "Quality ImprovementFundamentals," May 1991.
B8Mansir and Schacht, p. 2-7.
59 Ibid.
17
Admiral Frank B. Kelso II, emphasizes Total Quality
Leadership as indicated in this policy statement he sent
Navy-wide:
The Chief of Naval Operations Executive SteeringCommittee has developed a statement of mission, visionand guiding principles for U.S. naval forces, to beused in implementing Total Quality Leadership Navy-wide. The statement reads:
The Navy-Marine Corps team is the world- recognizedpremier naval and expeditionary force, fully capable ofconducting operations in support of U.S. nationalobjectives in an unpredictable global economic andpolitical environment.
Our mission is to provide combat ready forces tosupport the requirements of the unified commanders soour nation can deter aggression, encourage politicalstability, provide forward presence, establish seacontrol and project power from the sea against anythreat and win.
Our vision is a naval force that has the fullsupport of the American people and advances the boundsof personal excellence, dedication and integrity;technology; joint expeditionary and combinedoperations; combat tactics and doctrine; maintenance,logistic support and staying power; and quality of lifefor our people.
We will be guided by the following principles:- Value tradition but encourage and embraceinnovation.
- Include education and training as an integralpart of our mission.
- Safeguard people, resources and the environment.
We will:- Accomplish our mission through teamwork.- Train and equip our forces to operate with theArmy, Air Force, Coast Guard, our friends andallies
.
- Provide a clear and accurate portrayal of ourcapabilities and operations for all.
- Make decisions in the best interests of ourmission, putting aside parochialism and oldhabits
.
- Promote the dignity of our people and theirfamilies
.
- Provide top notch service to all.
18
We are committed to:- Honesty, integrity and the highest standards ofmoral and ethical conduct.
- Equal opportunity for all.- Open and effective communications.- Quality and continuous improvement.- Decisions based upon data and knowledge.- Being good stewards of the taxpayers' resources.- Maintaining the chain of command.
As we progress toward full implementation of TQL,the mission, vision and guiding principles will ensurewe are all working toward a common purpose. 60
Rear Admiral Jack E. Buffington, Commander, Naval
Facilities Engineering Command promotes quality support to
the Navy. Admiral Buffington asserts, "We are committed to
Total Quality Leadership and will continue to phase it into
how we conduct our business." 61 Advocating quality support
through people, he says, "We have placed people who know the
business best closer to the customer, and we have delegated
more decision making to them." 62
60Admiral Frank B. Kelso II, "CNO Stresses TQL," NavyCivil Engineer , Fall 1991/Winter 1992, p. 27.
"Rear Admiral Jack E. Buffington, "Quality Support toa Changing Navy," The Military Engineer , March-April 1993,p. 29.
62 Ibid.
19
THE TEAM CONCEPT
Peter R. Scholtes advocates the use of project teams to
improve quality, productivity and processes. 6' Underpinning
Scholtes' approach to project management are three
elements. 61 First, the approach highlights the quality
improvement principles taught by Dr. W. Edwards Deming.
Second, data -based methods drawn from statistics and
"classical logic" are used in the approach. 6' Scholtes
refers to the application of data as the "scientific
approach". 6' Third, guidelines are provided for building
and maintaining groups, planning and managing projects and
conducting productive meetings.
Scholtes discusses the new approach to management
referred to as "Quality Leadership". 67 This approach
emphasizes quality improvement rather than short-term
profits. Organizations are more effectively meeting the
needs of customers by "learning how to monitor, control and
constantly improve production systems." 68 Scholtes contends
"Peter R. Scholtes, The Team Handbook: How to UseTeams to Improve Quality (Madison, Wisconsin: JoinerAssociates, Inc., 1988), p. 1-1.
64 Ibid., pp. 1-1 - 1-2.
65 Ibid., p. 1-1.
66 Ibid., p. 1-1.
67 Ibid., p. 1-1.
68 Ibid., pp. 1-1 - 1-2.
20
that decision making in Quality Leadership organizations is
based on the application of data rather than speculation.
The aim of the organization "is on improving how work gets
done (the methods) instead of simply what is done (the
results) ." 69
Scholtes suggests that a Quality Leadership approach
restructures the relationships between employees and
management
.
7G The role of the manager is to assist the
employees in doing the "best job possible", anticipating and
removing barriers that deter employees from producing
quality work.' 1 Employees contribute the knowledge gained
on the job to improve processes. 72
Scholtes and Joiner Associates use the triangle shown
in figure 4 to represent Deming's theories. 73 Each corner
of the triangle represents an essential ingredient found in
a successful organization. 74 The first corner represents
the quality expectations of the customer, the focus of the
organization. The second corner depicts the data-based or
scientific approach for continuous improvement of processes.
The third corner portrays the members of the organization
69 Ibid., p. 1-2.
70 lbid.
71 Ibid.
72 Ibid.
"Ibid., p. 1-4.
74 Ibid.
21
Qual ity
ScientificApproach
All OneTeam
Figure 4 The Joiner triangle for successfulorganizations .
"working together as 'all one team 1 " in learning about
quality improvement principles. 75 Scholtes compares the
triangle to a three-legged stool. 76 Together, the elements
form a stable system. But when the organization is lacking
one of the elements, "... the result is disaster." 77
75 Ibid.
76 lbid.
77 Ibid
22
Scholtes says the transformation to Quality Leadership
is a demanding task that requires the dedication and
commitment of top management and others in the
organization.' 8 He points out that project teams are just
one component in the Quality Leadership process. 79
Furthermore, important to understanding project teams is an
understanding of the shortcomings of other management
techniques
.
A common management practice in the United States is
called Management by Objectives or Management by Results.
This technique features the traditional chain of command
approach. Performance objectives in the form of numerical
goals or quotas are established at the top of the
organization and then filtered down through a chain of
accountability. Scholtes maintains that the shortcomings of
the Management by Results approach originate from the
reliance on numerical goals. 80 Management by Results places
insufficient emphasis on processes and systems, "the real
capabilities of the organization as a whole." 81 Scholtes
suggests that workers, supervisors and managers alike are
guided by the arbitrary numerical goals, and consequently,
7a Ibid.
"Ibid.
80 Ibid., p. 1-5
S1 lbid.
23
may lose sight of the overall purpose and vision of their
organization. 82
Scholtes attributes several problems to the use of
numerical goals in judging and directing performance."
First, short-term thinking results from a system of
numerical objectives and quotas. Short-term efforts are
foremost when survival of the organization depends on
attainment of long-term objectives. Second, reliance on
numerical goals leads to a misguided focus. Achievement of
numerical goals does little to expand the capability of the
system. Only improvement of the system can expand
capability. Third, an environment of numerical objectives
provokes internal conflict. The standards applicable to one
part of the organization may not conform with the standards
of another part. The resulting conflicts may lead to a
breakdown of teamwork and cohesiveness . Fourth, the
numerical goals may be unreachable and beyond the capability
of the system. The employees "are forced by the system to
fudge figures, alter records or just 'play the game' — to
work around the system instead of improving it." 84 Scholtes
suggests that the worst shortcoming of Management by Results
is greater fear. The employees are fearful "of what will
happen if orders are not followed exactly, of not getting a
82 Ibid.
83 Ibid., pp. 1-5 - 1-8.
84 Ibid., p. 1-7.
24
raise or a promotion, of being out of favor or losing a
job." 5 ' Lastly, Management by Results fosters a "blindness
to customer concerns". 86 Success is measured in terms of
meeting a numerical goal rather than providing quality
products or services and satisfying the customer. 87
Project teams are an important component in the Quality
Leadership process. Scholtes states that project teams are
an integral part of a "company-wide transformation
strategy. 8' The role of teams includes the identification
of key processes or areas needing improvement. Managers
take part in guidance teams that supervise project teams
which are responsible for finding problem solutions. 8 -
Project teams not only focus on quality improvement of
processes but also instill the principles of Quality
Leadership throughout the organization. 90 Scholtes mentions
several lessons provided by an organization's project
teams. 9: Members of a project team learn how to work
together as a team and they learn how to use scientific
methods to improve processes. Team leaders learn techniques
85Ibid.
86 Ibid., p. 1-8.
87 Ibid.
88 Ibid., p. 1-17.
89 Ibid.
90 Ibid., p. 1-18.
91 Ibid., pp. 1-18 - 1-20.
25
for planning and managing projects and designing and
conducting meetings. Managers in charge of guidance teams
also learn about scientific techniques and they learn how to
guide a team's progress.
Projects allow empowerment of employees at lower levels
in the organization because decision-making is shifted
downward. Team members learn that quality improvement is
hard work and "managers learn they need to be patient." 92
Scholtes states that project teams aid in the
development of internal experts trained in quality
improvement techniques. 93 Initial projects enable these
technical experts to enhance their proficiency in training
and instruction. Project teams also improve quality
improvement efforts by making presentations and by involving
others in the process.
92 lbid., p. 1-19
"Ibid.
26
QUALITY IMPROVEMENT PROCESS
The Ralph M. Parsons Company is an example of a design-
const:ruction firm dedicated to continuous quality
improvement. Their quality policy clearly states that they
are committed to performing quality work for their clients.
The company describes their quality improvement initiatives
as the Parsons Quality Improvement Process (QIP). 94 The
process begins with the commitment and involvement of top
management
.
?c
It enables employees to fully understand the
performance requirements expected of them. The process
improves efficiency and eliminates waste by promoting
teamwork and improving problem solving capabilities. 96
The Parsons QIP is based on the quality management
concepts taught by Philip Crosby, Dr. W. Edwards Deming and
Dr. J. M. Juran. 97 Parsons has applied these quality
management principles to their specific type of work in
development of the Parsons QIP. Parsons contends that these
principles "have been developed into a systematic and
practical approach for improving quality." 98
94 Parsons, p. 1
95 Ibid.
96 Ibid.
"Ibid.
98 Ibid.
27
The groundwork for the Parsons Quality Improvement
Process is four quality improvement fundamentals called "the
absolutes of quality". 99 These fundamentals are presented
as answers to questions: 100
- What is quality? Conformance to Requirements
- How do we achieve it? Prevention
- What is our performance standard? Zero Defects
- How can we measure quality? Cost of Doing Things
Wrong
Parsons defines quality as conformance to
requirements. 101 Quality work is produced when there is an
understanding of the requirements and when the firm meets
those requirements. 102 Quality is achieved by systematic
prevention of errors. Parsons claims that "keeping errors
from happening is more cost-effective than fixing them after
they occurred." 103 Parsons' performance standard is zero
defects. Zero defects implies 100 percent conformance to
the requirements. 104 Each employee must embrace the concept
that technical, schedule or budget nonconformance is not
"Ibid.
100 Ibid.
101 Ibid., p. 2
102 Ibid.
103 Ibid.
104 Ibid.
28
acceptable.'1 Parsons' measurement of quality is the price
of nonconformance or the cost of rework. 106 As the cost of
rework decreases, the quality of the work improves. 107
The Parsons Quality Improvement Process uses quality
improvement tools or methods based on the premise that
"all work is a process." 108 The firm creates a work process
model to assist in problem solving. The model aids in
identifying specific input, output and production
requirements necessary to produce desired results. Lt
Parsons outlines seven elements that comprise their
quality improvement program. 110 The first four elements
constitute the fundamental structure of the QIP. These
elements are organization, education, awareness and
recognition. The remaining elements allow each Parsons
employee to set in motion the principles of quality
improvement. They are defining requirements, measurement
and corrective action.
105 Ibid.
106 Ibid.
107 Ibid.
108 lbid.
109 lbid.
no Ibid., p. 3
29
Parsons maintains that the QIP began with the
commitment of the company president and that commitment to
the process has migrated to every part of the
organization.'1 Conversely, each employee has the
opportunity to initiate personal and companywide actions to
improve quality and eliminate problems. 112
Emphasizing the team approach, Parsons established a
QIP organization based on quality management functions for
the company, divisions, departments, projects and groups. 113
Figure 5 portrays the Parsons Quality Improvement Process
organization. 114
The Quality Improvement Steering Committee oversees the
Quality Improvement Team (QIT) . The steering committee
provides the support and resources necessary for
implementation of the QIP. 115 The steering committee
demonstrates the solid commitment to quality improvement
U1 lbid.
112 Ibid.
U3 lbid.
114 Ibid., p. 4.
U -Ibid., p. 3.
30
Quality Improvement Steering Committee
Quality Improvement Team I.QIT)
Organization Education Auareness Recognition Defining Measurement Cortective
Reguirements Action
Oi vision
Qua 1 1 tg Commi t tees
<PQCs;
Pro lec t
Qual 1 tg Commi t tees
(PQCs)
Projec t Cot rec t 1 ve
Act ion Teams <CATs ) Division CATs Company CATs
Depar tment
Qual 1 ty Commi t tees
(DQCs )
Sect ion
Qual 1 ty Commi t tees
(SQCs)
Department CRTs
Figure 5 The Parsons Quality Improvement Processorganization.
by top management. 116 The president of the company is the
chairman of the steering committee.
The Quality Improvement Team provides "working- level"
implementation of the seven element quality process,
advancing the vision and principles of the steering
committee 117 Parsons asserts that "the successful
116 Ibid.
117 lbid., p. 4.
31
implementation of the QIP requires a total company
understanding, acceptance and participation." 118
The Quality Improvement Team reviews companywide
Corrective Action Requests (CARs) from departments or
divisions within the firm. The QIT assigns Corrective
Action Teams (CATs) to identify and recommend solutions to
problems. CATs normally evaluate only interdivision or
interdepartment problem areas. 119
Division or Department Quality Committees (DQCs)
implement the seven QIP elements within their division or
department. These committees are directed by the division
or department manager and other key personnel within the
division or department participate. The DQCs administer the
quality process by: 120
- Organizing the DQC per QIP guidelines.
- Promoting the QIP programs for training, awareness
and recognition.
- Creating division or department procedures for key
work activities.
- Measuring and analyzing performance of key work
activities
.
u8 Ibid.
u9 Ibid., p. 5
12C Ibid., pp. 5-6.
32
- Taking corrective action and, if needed, assigning
CATs to make recommendations for improvement of key
functional areas.
Project managers in the firm place as much emphasis on
quality improvement as they do on the cost and schedule
aspects of a project. 121 Division managers may establish
Project Quality Committees ^PQCs) for certain projects to
focus on quality issues. The PQC is comprised of
representatives from each functional area assigned to the
project such as engineering, procurement and supervision.
Project managers conduct routine quality improvement
meetings. Using a team-building approach, these meetings
focus on "quality- related items" including: 122
- Definition and communication of the scope of work at
every level on the project.
- Effective use of standard company procedures.
- Improving the relationship with customers and
suppliers
.
- Measuring and analyzing performance.
- Effectiveness of the corrective action process.
- Effectiveness of division, department and Corrective
Action Team support for the project.
121 lbid., p. 6.
122 lbid., pp. 6-7
33
Parsons advises that "discussions regarding existing
problems focus on finding ways of improving methods for
producing work that conforms to requirements — not on
assigning blame." 123 Employees are encouraged to provide
suggestions for preventing problems. 124 The objective of
"error- free work" is emphasized during these productive QIP
meetings
.
12S
Parsons promotes the attitude of "Quality Improvement
Through Teamwork". 126 But the detailed application of QIP
concepts in the work place is a difficult task. 127 Parsons
claims that:
. . . the PQCs provide the "workshop" or clearinghousefor the project's team members so that specificproblems are addressed and ways are developed to applythe QIP principles, concepts and working tools to theindividual's work processes. 128
Parsons considers employee education as a critical
element in the implementation of the QIP. The firm conducts
"Quality Improvement Fundamentals" classes and seminars to
provide each employee with the necessary quality improvement
techniques
.
129
123 Ibid., p. 7.
124 Ibid.
125 Ibid.
126 Ibid.
127 Ibid.
12a Ibid.
129 lbid.
34
Parsons defines awareness as "the recognition of
multiple forms of communication presented in an open,
constant manner to describe all aspects of the QIP." 130
Parsons communicates quality awareness through the company
magazine, posters and articles in the "Parsons
Perspective". 13 '- The objectives of Parsons awareness efforts
include: 132
- Confirm the commitment of top management to the QIP.
- Keep all employees informed of successful QIP
efforts
.
- Provide straightforward information about the QIP to
prevent any misunderstandings.
- Provide additional education opportunities.
- Assist management in recognition of employee efforts.
Parsons considers the special recognition of employee
contributions as an important part of the quality process.
The firm established a companywide recognition program to
reward quality improvement achievements. Individuals or
groups that improve the overall level of quality are given
recognition awards. 133
130 Ibid., p. 8.
131 Ibid.
132 Ibid., pp. 8-9
133 Ibid., p. 10.
35
Parsons defines a process as "an orderly series of
actions or steps that achieve a result such as producing a
product for our customer." 134 The progress of work depends
on a clear definition of the requirements, "expressing the
customer's or supplier's needs and expectations for each
work step." 135 Parsons suggests that sound business
relationships based on mutual respect and trust result when
all the participants in a project attempt to understand the
requirements of others. 136 Additionally, good relationships
are developed through open communication. Quality
improvement is enhanced because "... honest and open
communication encourages the clarification of either the
input or the output requirements for the work processes." 137
Quality is achieved through conformance to defined
requirements. 138 However, tolerances are allowed for the
output of a work process. 139 For example, Parsons prepares
construction cost estimates that vary from -5 percent to +30
percent for a conceptual construction estimate and ±5
percent for a definitive construction estimate. 140
134 lbid., p. 11.
135 Ibid., p. 12.
136 Ibid.
:37 Ibid.
138 Ibid.
139 lbid.
140 Ibid.
36
Parsons contends that working with customers in
identifying requirements assists in minimizing changes. 141
For instance, changes are minimized by helping the customer
determine the amount of detail needed on engineering
drawings and specifications.
After defining the output requirements, the next step
is to define a specific process scope. 142 Input and supplier
information are considered when defining the process scope.
Facilities and Equipment
Needed
Item needed:
Uho provides?
Requi rements :
UORK INPUT (task-unique)
I tern
Supp
Pequ
needed
:
lers
:
rements
:
Procedures Needed
I tpm needed:..
Uho provides?.
Requi rements :.
Performance Standards
Quality, Cost 8 Schedule
I tern needed:,.
Uho def ines?_.
Requi rements :.
PROCESS
Process name:.
Star t inq at :_.
Endinq at :
Training and
Knou ledge Needed
I tern needed
:
Uho provides?
Requ i rements
:
PROCESS
OUTPUT
—1 tern
produced
:
Customers :
Requi re-
ments :
Figure 6 Parsons 1 work process model.
141 lbid.
142 Ibid., p. 13.
37
Parsons uses a work process model to aid in identification
of all input and output requirements. Figure 6 shows the
work process model used at Parsons. 143 The model is a
"conceptual tool" that enables application of the QIP
elements to a project. 144
The Parsons QIP uses measurement as a tool for process
improvement. A specific process baseline is determined for
analysis. Information suitable for measurement includes
such items as time, the number of steps, redundant events,
delays and errors. 145 The collection and analysis of data
and the communication of measurement results are important
for successful process improvement.
Corrective action involves the analysis and elimination
of problems. 146 Problems or "nonconformances" are identified
by measurement. 147 Wrong dimensions on a drawing,
information missing from the specification or untimely
reports for the customer are examples of nonconformances. 148
Parsons discusses a logical sequence of events for
eliminating nonconformances. 149 First, the problem is
143 Ibid., p. 14.
144 Ibid.
145 Ibid. . p. 17.
146 Ibid., p. 19.
147 Ibid.
148 lbid.
149 Ibid.
38
defined and a plan for the solution is formulated. Second,
a temporary "quick fix" allows the firm to stay in business
The quick fix does not provide a permanent solution, but
only minimizes the immediate effects of the problem. 150 The
third step is identification of the root causes. The root
causes are then eliminated by taking corrective action.
Next, the process is evaluated to determine if the change
solved the problem. A "follow up" is conducted to prevent
recurrence of the problem and to identify any side
effects. 150
150 Ibid.
150 Ibid.
39
CHAPTER 2
TOTAL QUALITY MANAGEMENT PRINCIPLES
DEMING'S FOURTEEN POINTS
Deming argues that the "Western style of management
must change to halt the decline of Western industry, and to
turn it upward." 1 - 1 The system of improvement or
transformation is accomplished through the application of
Deming' s Fourteen Points and elimination of the Seven Deadly
Diseases and Obstacles.
The Fourteen Points are applicable to any type of
organization including a government agency, a manufacturing
company or a construction company. By adopting the
following Fourteen Points, management sends a positive
signal of continuous improvement to employees, investors and
customers alike: 152
1. Create constancy of purpose towardimprovement of product and service, with the aim tobecome competitive and to stay in business and toprovide jobs.
2. Adopt the new philosophy. We are in a neweconomic age. Western management must awaken to thechallenge, must learn their responsibilities and takeon leadership for change.
3
.
Cease dependence on inspection to achievequality. Eliminate the need for inspection on a massbasis by building quality into the product in the firstplace.
151Deming, p. 18.
U2 Ibid., pp. 23-24.
40
4. End the practice of awarding business on thebasis of price tag. Instead, minimize total cost.Move toward a single supplier for any one item, on along-term relationship of loyalty and trust.
5. Improve constantly and forever the system ofproduction and service, to improve quality andproductivity and thus constantly decrease costs.
6. Institute training on the job.7. Institute leadership. The aim of supervision
should be to help people and machines and gadgets to doa better job. Supervision of management is in need ofoverhaul, as well as supervision of production workers.
8. Drive out fear, so that everyone may workeffectively for the company.
9. Break down barriers between departments.People in research, design, sales and production mustwork as a team, to foresee problems of production andin use that may be encountered with the product orservice.
10. Eliminate slogans, exhortations and targetsfor the work force asking for zero defects and newlevels of productivity.
11a. Eliminate work standards (quotas) on thefactory floor. Substitute leadership.
b. Eliminate management by objective. Eliminatemanagement by numbers, numerical goals. Substituteleadership.
12a. Remove barriers that rob the hourly worker ofhis right to pride of workmanship. The responsibilityof supervisors must be changed from sheer numbers toquality.
b. Remove barriers that rob people in managementand in engineering of their right to pride ofworkmanship. This means, inter alia, abolishment ofthe annual or merit rating and of management byobjective.
13. Institute a vigorous program of education andself - improvement
.
14. Put everyone in the company to work toaccomplish the transformation. The transformation iseverybody's job.
Point 1 : Create contancy of purpose toward improvementof product and service, with the aim to become competitiveand to stay in business and to provide jobs.
William W. Scherkenbach suggests that the constancy of
purpose advocated by Deming is based on a "customer-driven,
41
team- fueled and even-keel approach to business." 151 The
challenge for top management is to operationally define
customer requirements to remain competitive in today's
international marketplace. 154 The constancy of purpose
necessary to meet the expectations of customers is
established by making policy and by long-range planning. 15 -
Rather than focusing on short-term results, the
organization should strive to stay in business and provide
jobs through innovation, research and education, continuous
improvement of product and service and maintenance of
equipment and fixtures. 156 Mary Walton advises that plans to
stay in business should answer the following questions: 157
- What materials will be required, at what cost?- What will be the method of production?- What new people will have to be hired?- What changes in equipment will be required?- What new skills will be required, and for how manypeople?
- How will current employees be trained in these newskills? How will supervisors be trained?
- What will be the cost of production?- What will be the cost of marketing? What will be thecosts and methods of service?
- How will the product or service be used by thecustomers?
- How will the company know if the customer issatisfied?
153William W. Scherkenbach, The Deming Route to Qualityand Productivity: Road Maps and Roadblocks(Washington, D.C.: CEEpress Books, 1991), p. 10.
154 Ibid., p. 11.
155 Ibid.
156Walton, p. 34.
157 Ibid., p. 56.
42
Deming states that innovation is achieved only when
"there is faith that there will be a future" and when top
management exhibits "unshakable commitment to quality and
productivity." 158 Innovation also depends on the appropriate
investment in research and suitable education for employees.
Successful organizations must constantly improve
products and services. Deming cautions that producing the
wrong product or offering the wrong service may force an
organization out of business even if the employees are
faithfully working towards improving efficiency. 159
Furthermore, the investment in the maintenance of equipment,
furniture and fixtures and in new aids to production is
essential for product improvement. 160
Point 2: Adopt the new philosophy. We are in a neweconomic age. Western management must awaken to thechallenge, must learn their responsibilities and take onleadership for change.
Acceptance of the new philosophy is essential to
remain competitive in the new economic age. Walton contends
"quality must become the new religion." 161 We must end the
practice of accepting mistakes, defects, unsuitable
materials and inadequate training. 162
158Deming, p. 25.
159 Ibid., p. 26.
160Walton, p. 57.
161 Ibid., p. 58.
162Deming, p. 26.
43
Scherkenbach discusses why there has not been
widespread acceptance of Deming's philosophy in the nited
States. Scherkenbach says that the new philosophy
represents a major change, a "revolution", and that most
people exhibit a natural resistance to major change.(
He
cites other quality experts who call for "evolution" and
advocates a less drastic change in management philosophy .
(
But to stay competitive and successfully meet the demands of
customers, management in America must recognize the need for
major change, a quality revolution.
Point 3 : Cease dependence on inspection to achievequality. Eliminate the need for inspection on a mass basisby building quality into the product in the first place.
Deming suggests that "100 percent inspection to improve
quality is equivalent to planning for defects,
acknowledgement that the process has not the capability
required for the specifications." 165 Quality is achieved
through improvement of the production process rather than
through inspection or detection of defects. 166
A system of mass inspection involves identifying
defects in the product, followed by scrapping or rework. 167
The scrap and rework in turn increases costs. Deming
163Scherkenbach, p. 22.
164 Ibid.
16 -Deming, p. 28.
166 Ibid., p. 29.
167 Scherkenbach, p. 26.
44
recommends that inspection is best accomplished "at the
right point for minimum total cost." 168 Statistical control
is achieved through the inspection of small samples of
product for use in process control charts. ;! Deming
compares the old and new way of doing business: "The old
way: Inspect bad quality out. The new way: Build good
quality in." 170
Point 4: End the practice of awarding business on thebasis of price tag. Instead, minimize total cost. Movetoward a single supplier for any one item, on a long-termrelationship of loyalty and trust.
Deming advocates a long-term relationship with
suppliers for reducing costs. 171 Long-term relationships
foster an environment where suppliers invest in continuous
improvement unlike short-term ventures. Yet, finding a
single supplier that consistently meets all requirements and
demonstrates constant improvement is a difficult task.. 172
Deming stresses that "price has no meaning without a
measure of quality being purchased." 173 Awarding business to
the low bidder ultimately results in low quality and higher
168Deming, p. 29.
169 Ibid., pp. 29-30.
170Walton, p. 60.
171Deming, p. 35.
172Scherkenbach, p. 131.
173Deming, p. 32.
45
costs. 174 Deming argues that "American industry and the U.S.
government, civil and military, are being rooked by rules
that award business to the lowest bidder." 175
The basis for choosing suppliers should be not only on
the cost of products and services but also on the quality of
those products and services. 176 Scherkenbach advises that
suppliers need to exhibit continual use of statistical
control procedures, while buyers should have the appropriate
knowledge to effectively interpret the statistical
information provided by the suppliers. 177
Point 5: Improve constantly and forever the system ofproduction and service, to improve quality andproductivity and thus constantly decrease costs.
Deming says "... that quality must be built in at the
design stage" and teamwork at this stage is key to the
process of continuous improvement. 178 Test methods are
subject to constant improvement and each team member should
strive for a better understanding of the needs and
expectations of customers. 179
Every member of the organization must embrace constant
improvement. Every activity participates in the process,
174 Ibid.
175 Ibid.
176 Scherkenbach, p. 132.
177 Ibid.
178Deming, p. 49.
179 Ibid.
46
DEMING CYCLE
f>
Recognize the opportunitg
/
hc t on t he oppor turn tgTest the theorg to achieve
t he oppor tun lt
g
Observe the test results
Figure 7 The Deming Cycle.
including not only manufacturing or service activities but
also purchasing, transportation, engineering,
maintenance, sales, personnel, training and accounting. lf
Figure 7 shows the Deming Cycle, "a procedure for the
improvement of analytical problems or opportunities. 181 The
procedure consists of four steps. Scherkenbach links the
Process of Continuous Improvement shown in figure 8 to the
:30Walton, p. 66.
181 Scherkenbach, pp. 35-36.
47
u.
Process
feedback
People
tlai er- 1 al
Equi pment
hethod
Env i r onment
' -TPi
feedback
People
Material
Equipment
Method
Env i ronment
Deminq Cycle
Step I
Step 2
Step 3
Step 1
People
Hater i al
Equipment
Method
Env i ronment
Figure 8 Scherkenbach 1 s Process of ContinuousImprovement .
Deming Cycle. 182 He emphasizes that the process "spirals
toward a customer target." 183
Step 1: Recognize the opportunity. Scherkenbach
suggests that we operationally define the opportunity by
gaining a better understanding of customer requirements. 184
The opportunity for improvement shown in figure 9 is
represented by the distance between the feedback specified
by the customer in the customer feedback loop and the
182Scherkenbach, p. 35.
183 lbid.
184 Ibid., pp. 36-37.
48
r >Process
feedback
V
Improvement
Oppor turn tg
Deming CgcleStep 1
Step 2
Step 3
Step 4
Customer
feedback
People
Material
Equipment
Method
Envi ronitient
Denunq Cqcle
Step I
Step 2
Step 3
Step 4
People
Mater i al
Equipment
Method
Envi ronment
Figure 9 Operationally define the opportunity.
process performance specified by the process feedback
loop. 18 " As the two feedback loops approach each other, the
opportunity to improve decreases while the capability of the
process increases. 186 The variability of the process also
decreases making "it possible to have higher quality at
lower cost ." 187
18B Ibid., pp. 36-37.
186 Ibid., p. 37.
187Ibid
49
Deminq Cgcle
Step I
Step 2
Step 3
Step 1
People
Mat er i al
Equipmeni
Method
Env i roninent
Figure 10 Operationally define the theory.
After operationally defining the opportunity, the
theory "on how to realize the opportunity" is operationally
defined. 188 Figure 10 illustrates the theory which "could
start with a hunch or it could be as certain as a law of
nature or physics." 189 The theory is accompanied by a plan
188 Ibid.
189 Ibid., pp. 37-3:
50
i_j.Peop]
e
Hater lal
Equipment
Hethod
Envi ronment
Process
i eedback
Customer
feedback
People
Hater lal
Equipment
Hethod
Envi ronment
Test it i n terna]
]
g
and on a smal
1
scale externa]]g.
Deminq Cqcle
Step 1
Step 2
Step 3
Step 4
People
Material
Equipment
Method
Env i ronment
Figure 11 Test the theory.
for testing to make "rational predictions" of the process
performance. 190
Step 2: Test the theory. Scherkenbach recommends that
testing should be conducted internally in a production
environment or laboratory and externally on a small scale
with customer participation. 191 This participation increases
190 Ibid., p. 3:
,91 Ibid.
51
i_tPeople
Material
Equipment
flet hod
Envi ronment
Process
feedback
Deming Cqcle
Step I
Step 2
Step 3
5>^
Cus tomer
leedback
People
Maten al
Equipment
Method
Envi ronment
Analyze anything
uhich could a< feet
tomorrou' s resul ts
Deminq Cycle
Step 1
Step 2
Step 3
Step 4
People
Material
Equipment
Method
Envi ronment
Figure 12 Observe the results.
customer satisfaction and fosters a better understanding of
customer requirements. 192 Step 2 is portrayed in
figure ll. 193
Step 3: Observe the results. Analysis of results is
best accomplished through statistical methods. 194 But
Scherkenbach advises that both quantitative and qualitative
192 lbid
193 lbid
194 lbid
52
Customer
feedback I
I J^
Process
feedback\ J
\r 1'
Peop/e Deming Circle People Deming Cgcle Peoplenatehal Step 1 Hater ial Step I MaterialEquipment v
Step 2 Equipment Step 2 Equipmentriewiod Step 3 Method Step 3 MethodEn*i ronment Step 4 EnV 1
'ir-mori1 / Step 4 Env i ronment
/ \ //
v
Predict the
oppor t uni ty
Figure 13 Act on the opportunity.
observation facilitates prediction of "tomorrow's
results". 19- Figure 12 shows step 3 in the Deming Cycle. 196
Step 4: Act on the opportunity. The final step shown
in figure 13 is to act on the results of the testing. The
predictions made in step 1 are revised based on the
195 Ibid.
:96 Ibid., p. 39
53
results. 197 The cycle is continually repeated to further
improve the process and reduce variability.
Deming says that "putting out fires is not
improvement." 158 He contends that finding and removing the
cause of a problem does not improve the process but brings
it "back to where it was in the first place." 199
Point 6: Institute training on the job.
Deming asserts that "training must be totally
reconstructed." 200 Training and education of employees is a
key component of the continuous improvement process.
Management must realize "the problems that rob the
production worker of the possibility of carrying out his
work with satisfaction." 201
Employee performance can be evaluated using control
charts similar to those used in measuring the statistical
control of a process. 202 Additional training may not improve
employee performance beyond the "stable" condition. 203 This
approach is helpful in determining if adequate training has
been provided for employees. However, Deming emphasizes the
197 Ibid.
198Walton, P- 67
199 Ibid.
200Deming, P- 52
201 Ibid.
202Walton, p. 68
203 lbid.
54
need for continued training prior to reaching statistical
control of performance and when improvement is still
possible. 204
All employees must gain an understanding of variation
and the basic use of control charts. 20- Likewise, the
organization must provide training on new equipment and
processes
.
Point 7: Institute leadership. The aim of supervisionshould be to help people and machines and gadgets to doa better job. Supervision of management is in need ofoverhaul, as well as supervision of production workers.
Deming stresses that "the job of management is not
supervision, but leadership." 206 Management must direct
efforts toward continuous improvement of the quality of
product and service. 207 Deming advises that management
should make every effort to remove barriers which deter
employees from taking pride in their work. 208
Scherkenbach suggests that supervisors should perform
not only as judge or overseer but also as coach and
teacher.^ - He contends that the main responsibility of the
supervisor is to develop employees, enhancing their
204 Ibid
205 Ibid., pp. 68-69
2C6Deming, p. 54.
207 Ibid.
208 Ibid.
209 Scherkenbach, p. 89.
55
Break doun
departmental barriers
Cease dependence
on mass inspect ion
Inst i tuie educat ion
and retraining
Inst i tute
t rai ninq
Dr i ve
out
iear
El im mateuork standards
End auardinq
business on pncetaq
El imi nate si oqans
and exhor tat ions
J
ACont i nuous
improvement
Remove
bar r i ers
Figure 14 Fear affects nine other points.
performance and assisting in their continuous improvement. 210
Supervision must progress beyond the routine monitoring of
"ordinal numbers and percentages." 211
Point 8: Drive out fear, so that everyone may workeffectively for the company.
Deming argues that employees need to feel secure to
perform their best work. 212 The word secure means "without
fear, not afraid to express ideas, not afraid to ask
210 Ibid.
211Deming, p. 56
212 Ibid., p. 59
56
questions ." zl - Deming claims that fear leads to poor
performance and "padded figures". 214
Management should begin with elimination of fear
because of its significant influence on nine of the fourteen
points. Figure 14 portrays the affect of fear on the other
points. 215 Scherkenbach maintains that the success of
statistically based systems of management greatly depends on
"an atmosphere of mutual respect." 216 Fear also leads to
wasteful activities and increased costs.
Point 9: Break down barriers between departments.People in research, design, sales and production must workas a team, to foresee problems of production and in use thatmay be encountered with the product or service.
There are both internal and external customers in a
system of continuous improvement. Each member of an
organization must gain an understanding of customer needs,
both internal and external. Design and sales departments
must communicate their requirements to the production
department in order to establish mutually attainable
goals. 2X1 Thus, teamwork is an essential element in
continual improvement of quality.
213 Ibid.
214 Ibid.
21 "Scherkenbach, p. 75.
216 lbid.
217Walton, p. 74.
57
Deming suggests that "teamwork requires one to
compensate with his strength someone else's weakness, for
everyone to sharpen each other's wits with questions." 218
Teamwork therefore requires a concerted effort by everyone
on the team and a willingness to take risks. Without fear
of taking a risk, teams could make significant contributions
toward improvement of products and services. 219
Point 10: Eliminate slogans, exhortations and targetsfor the work force asking for zero defects and new levels ofproductivity.
Deming claims that slogans do not aid in improving work
performance. 220 One slogan states, "Your work is your self-
portrait. Would you sign it?" Deming answers, "No — not
when you give me defective canvas to work with, paint not
suited to the job, brushes worn out, so that I can not call
it my work." 221 Targets, slogans, and exhortations that
promote increased productivity "never helped anyone to do a
better job." 222 Slogans like "Zero defects" and "Do it right
the first time" are creative, but the problem lies with
management failing to provide the work force with the means
to these expectations. 223
218Deming, p. 64.
219 lbid.
220Walton, p. 76.
221Deming, p. 65.
222 Ibid.
223Walton, p. 76.
Proportionof itemsfound faultyat finalaudit
Quality improves byremoval of specialcauses
Stabilized
Continuedimprovementis expectedbut will not happen
Wishful
^
thinking
1981 1982 1983 1984 1985
Figure 15 Typical path of frustration.
Scherkenbach stresses that motivation and personal
awareness contribute to reducing the variability in a
process 224 But Scherkenbach says that these factors are no
substitute for training, knowledge of the process and proper
tools and procedures. 225 Management's responsibility is to
seek continual improvement of the system and "to remove any
special causes detected by statistical methods." 226
224 Scherkenbach, p. 83
225 Ibid.
226Deming, p. 67.
59
Yield
Japan
WorkStandard
\
Japanese advantage
U.S. advantage
Start +1 + 2 + 3 +4
Figure 16 U.S. and Japanese approaches to workstandards .
Deming describes "a typical path of frustration" shown
in figure 15. 227 The program of quality improvement is based
on exhortations, revival meetings, posters and enthusiasm.
As quality improves each month, all participants expect
continual improvement. But eventually, the curve becomes
level, the process becomes stable. 228 Continued improvement
227 Ibid., p. 323
228 Ibid.
60
is only possible through "removal of special causes" which
is the responsibility of management. 229
Point 11: Eliminate work standards (quotas) on thefactory floor. Substitute leadership. Eliminate managementby objective. Eliminate management by numbers, numericalgoals. Substitute leadership.
Deming says that "a quota is a fortress against
improvement of quality and productivity ." 23c This concept is
hard to apply to the typical U.S. work place where work
standards are a common practice. In figure 16, Scherkenbach
illustrates the difference between the U.S. approach and the
Japanese approach to the production process. 231 The U.S.
approach moves promptly to the work standard, immediately
producing return on investment; whereas the Japanese take
more time to reach the standard, placing emphasis on
training, but surpassing the standard as the process
continues ,232
Scherkenbach suggests that the Deming approach,
demonstrated by the Japanese, results in more productivity
over the life of the process. 233 Similar to engineering
tolerances, work standards tend to limit the amount of
229 Ibid.
230 Ibid., p. 71.
231Scherkenbach, p. 85.
232 Ibid.
233 Ibid., pp. 85-86.
61
improvement in a system. 234 Efforts toward further
improvement are ceased upon reaching the work standard or
engineering tolerance. 235
Scherkenbach says that focusing on outcomes instead of
the process restricts the organization's ability to meet
customer requirements. 236 Plans are made to meet short-term
targets rather than concentrating on long-term customer
requirements. 237 Deming stresses that "the job of management
is to replace work standards by knowledgeable and
intelligent leadership." 238
Point 12 : Remove barriers that rob the hourly workerof his right to pride of workmanship. The responsibility ofsupervisors must be changed from sheer numbers to quality.Remove barriers that rob people in management and inengineering of their right to pride of workmanship. Thismeans, inter alia, abolishment of the annual or merit ratingand of management by objective.
Scherkenbach discusses three systems that inhibit
continuous improvement. 239 These systems are the Performance
Appraisal System, Daily Production Reports and the Financial
Management System.
234 Ibid., p. 86.
235 Ibid.
236 Ibid., p. 88.
237 Ibid.
238Deming, p. 75
239Scherkenbach, pp. 47-74.
62
Scherkenbach argues that the traditional performance
appraisal system inhibits continuous improvement because it
frustrates teamwork, encourages mediocrity, increases the
variability of performance and concentrates on the short-
term. 240 Alternately, a more desirable system of performance
appraisal "nurture [s] and sustain [s] individual employee
contributions to the continuous improvement of the
organization as a team." 241 The appraisal system should
recognize that people are an organization's most important
asset. The system should foster development and motivation
of employees. 242 An appraisal system supporting continuous
improvement requires:
. . . a continuous effort in counseling, coaching andhonest, open communications between the employee andthe supervisor, supported by opportunities forenhancement of professional, managerial andinterpersonal skills. 243
Scherkenbach recognizes that daily production reports
"place undo pressure for sheer quantity." 244 The reports
compel managers and supervisors to focus on short-term fixes
rather than on long-term solutions. 245 In striving to make
240 Ibid., p. 48
241 Ibid., p. 57
242 lbid.
243 lbid.
244 lbid., p. 70.
245 Ibid.
63
Kill themessenger
Filteredmformatio
Increasedfear
Micro-management
Figure 17 Killing the messenger.
daily quotas, they generate waste and jeopardize quality and
productivity
.
246
Scherkenbach suggests that managers and supervisors
provide reports to upper management on a weekly basis rather
than daily. This procedure empowers the employees by
promoting personal development and decision making ability,
and minimizes wasted human effort. 247
246 Ibid.
247 Ibid., pp. 70-71.
64
Scherkenbach warns of wasteful management practices
which isolate managers from important business information.
He says that:
Because of the way they [managers] treated bad news inthe past, they will insure that they will only see goodnews. Through killing the messenger they guaranteethat the information passed up to them will be filteredand censored to minimize their fear- inducingreaction. 248
Because management realizes that the information received is
filtered and censored, they react with "micromanagement" and
bypass "valuable" middle managers, inducing a fearful
atmosphere. 249 Figure 17 illustrates Scherkenbach' s thoughts
on killing the messenger. 250
The financial management system inhibits continuous
improvement because of the restrictions it places on
management. 251 Scherkenbach recommends that managers should
have more "flexibility" in managing budget resources and in
dealing with specific budget line items. 252
248 lbid., p. 71
249 Ibid.
250 Ibid.
251 lbid.
252 Ibid.
65
Point 13: Institute a vigorous program of educationand self - improvement .
Deming says that "what an organization needs is not
just good people; it needs people that are improving with
education." 25 Long-term planning involves "an investment in
people" who are constantly increasing their knowledge of new
methods and materials. 254 The need for education in
statistical methods relative to quality and productivity
improvement is becoming increasingly more important. 25 "
Point 14 : Put everyone in the company to work toaccomplish the transformation. The transformation iseverybody's job.
Deming describes a plan of action for accomplishing the
transformation. 256 "Management in authority" must recognize
the advantages of the other thirteen points and define the
new direction for the organization. 257 They must adopt the
new philosophy, demonstrating pride and commitment. All
members of the organization must receive an explanation of
the need for change. Deming suggests that "this whole
movement may be instituted and carried out by middle
management, speaking with one voice." 258
253Deming, p. 86
254Walton, p. 84
255 Ibid.
256Deming, pp. 86-92.
257 Ibid.
258 Ibid., p. 87.
66
Deming emphasizes that "every activity, every job is a
part of the process." 259 The work is divided into stages
through the use of a flow diagram. Every stage has a
customer — the next stage. 261 Each stage of the process
includes
:
Production — change of state, input changes to output.Something happens to material or papers that come intoany stage. They go out in a different state.Continual improvement of method and procedures[occurs] , aimed at better satisfaction of the customer(user) at the next stage. 261
All stages work together toward "optimum accommodation",
providing quality products and services for the "ultimate"
customer. 262 Each stage is improved through teamwork.
Deming says the purpose of a team is "to improve the input
and output at any stage." 263 The Deming Cycle (figure 7)
will guide the organization in its pursuit of continuous
improvement at any stage.
2S9 lbid.
260 lbid.
261 Ibid.
262 Ibid.
263 Ibid., p. 89
67
Leadership
n statistical
methodology
Assembly Purchas inq
depar t men t
Sales and
serv ice
Desiqn ot
produc t
Service and
uar rant y
Finanace,
payrol
account inq
Consumer
research
Transpor
tat ion
Legal
servicesResearch, scient 1 < ic
and industrial
Figure 18 Schematic plan of organization for qualityand productivity.
Deming offers a plan for constructing an organization
for quality and productivity. 264 Deming 's schematic plan
shown in figure 18 depicts the principles of organization
for quality. 265 This organizational concept is applicable to
any type of organization or company. The plan includes a
leader of statistical methodology who assists top management
in the improvement of processes.
264 Ibid., pp. 466-461
266 Ibid., p. 467.
68
DISEASES AND OBSTACLES
Deming identifies deadly diseases that plague American
management and hinder progress toward transformation. The
most severe ones are referred to as the Seven Deadly
Diseases and those of less severity are called Obstacles.
Deming states that elimination of these diseases and
obstacles requires a "complete shakeup of Western style of
management ." 266
Diseases. Deming enumerates the Seven Deadly
Diseases :
267
1. Lack of contancy of purpose to plan productand service that will have a market and keep thecompany in business, and provide jobs.
2. Emphasis on short-term profits: Short-termthinking (just the opposite from constancy of purposeto stay in business) , fed by fear of unfriendlytakeover and by push from bankers and owners fordividends
.
3. Evaluation of performance, merit rating orannual review.
4. Mobility of management; job-hopping.5. Management by use only of visible figures,
with little or no consideration of figures that areunknown or unknowable.
6. Excessive medical costs.7. Excessive cost of liability, swelled by
lawyers that work on contingency fees.
266 Ibid., p. 97.
267 Ibid., pp. 97-9
69
1
.
Lack of contancy of purpose to plan product andservice that will have a market and keep the company inbusiness, and provide jobs.
Walton emphasizes that a company "without constancy of
purpose does not think beyond the next quarterly dividend
and has no long-range plans for staying in business .
"
26f
Successful organizations must continuously improve products
and services, meeting and exceeding customer expectations.
2. Emphasis on short-term profits: Short-termthinking (just the opposite from constancy of purpose tostay in business) , fed by fear of unfriendly takeover and bypush from bankers and owners for dividends.
Deming says that "pursuit of the quarterly dividend and
short-term profit defeat constancy of purpose." 269 He claims
that stockholders prefer long-term growth rather than short-
term profits.
This emphasis on short-term profits is fed by fear of
unfriendly takeover. Deming suggests that "fear of
unfriendly takeover may be the single most important
obstacle to constancy of purpose." 270 He says the leveraged
buyout is "equally devastating". 271
26aWalton, p. 89.
269Deming, p. 99.
270 Ibid., p. 100.
271 Ibid.
70
3. Evaluation of performance, merit rating or annualreview.
Deming argues that "the performance appraisal or merit
rating focuses on the end product, at the end of the stream,
not on leadership to help people." 272 Walton further
explains that performance appraisals place emphasis on
short-term results rather than long-term planning. 273 She
says the appraisals "discourage risk-taking, build fear,
undermine teamwork and pit people against each other for the
same awards ." 274
Deming explains that performance evaluations increase
the variability of performance because people with below
average ratings try to emulate those with above average
ratings ,275
4. Mobility of management; job -hopping.
Deming quotes J. Noguchi , managing director of the
Union of Japanese Scientists and Engineers, who said,
"America can not make it because of the mobility of American
management." 276 Most Americans will probably disagree that
"America can not make it", but there is an apparent benefit
of tenured management committed to long-term growth and
272 Ibid., p. 102.
273Walton, p. 91.
274 Ibid.
27SDeming, p. 103
176" b Ibid., pp. 120-121.
71
quality improvement. Another serious problem, according to
Deming, is the mobility of labor in America resulting from
dissatisfaction with the job. 277
5. Management by use only of visible figures, withlittle or no consideration of figures that are unknown orunknowable.
Deming asserts that the most important figures are
"unknown or unknowable" . An example of this point is the
effect that a happy customer has on sales or the improvement
of quality and productivity from teamwork between
employees .
278
6. Excessive medical costs.
Walton states that medical costs are the largest
single expenditure for some companies. 279
7. Excessive cost of liability, swelled by lawyersthat work on contingency fees .
There are usually no real winners in a lawsuit.
277 Ibid., p. 121.
278 Ibid., pp. 121-122.
279Walton, p. 93.
72
Obstacles. There are several obstacles that hinder
progress toward improvement of quality and productivity.
These obstacles include: 280
- The supposition that solving problems, automation,
gadgets and new machinery will transform industry.
- Search for examples. Deming says that "improvement
of quality is a method, transferable to different problems
and circumstances." 281
- Our problems are different. But the principles of
quality improvement are applicable to all types of problems
- Poor teaching of statistical methods in industry.
- Our quality control department takes care of all our
problems of quality. Quality is the responsibility of
managers and supervisors as well as production workers.
- Our troubles lie entirely in the work force. Walton
suggests that "workers are responsible for only 15 percent
of the problems, the system for the other 85 percent." 282
She then says that the system is the responsibility of
management .283
280Deming, pp. 126-148
;81 Ibid., p. 128.
282Walton, p. 94.
283 Ibid.
73
- False starts. One type of false start is the
"wholesale teaching of statistical methods" without an
accompanying change in management philosophy.^ 64 Deming
describes another false start, the idea of QC-Circles
(Quality Control). He states, "the production worker can
tell us a lot about what is wrong and how improvements can
be made." 285 But QC-Circles can succeed "only if the
management will take action on the recommendation of the
Circle. " 286
- The supposition that it is only necessary to meet
specifications. The true measure of quality is whether or
not the product meets customer expectations rather than just
meeting specification requirements.
- Anyone that comes to try to help us must understand
all about our business. Deming explains that "help toward
improvement can come only from some other kind of
knowledge. " 287
284Deming, p. 136.
28S Ibid., pp. 136-137
286 Ibid., p. 137.
287 Ibid., p. 143.
74
QUALITY PRINCIPLES
Mansir and Schacht define principles as "broad
statements that provide a framework of general rules to
shape organizational thinking." 288 These principles apply to
every aspect of the organization. Mansir and Schacht stress
that these Continuous Improvement Process (CIP) principles
are the foundation for "judging behavior and the basis for
assessing corporate culture." 289
The principles of continuous improvement mirror
Deming's management concepts. These principles include
(I) constancy of purpose, (2) commitment to quality,
(3) customer focus and involvement, (4) process orientation,
(5) continuous improvement, (6) system -centered management,
(7) investment in knowledge, (8) teamwork, (9) conservation
of human resources, (10) total involvement and
(II) perpetual commitment. 290 Figure 19 shows how "the
principles work together in a logical and holistic manner to
give substance and vitality to the continuously improving
culture. " 291
288Mansir and Schacht, p. 3-1
289 Ibid.
290 Ibid., pp. 3-1 - 3-27.
291 Ibid., pp. 3-1 - 3-2.
75
Environment
Internalcustomer
Externalcustomer
Customerfocus andinvo 1vemen
t
Qrganization
Figure 19 Mansir and Schacht's holistic CIP view.
First, the constancy of purpose principle is centered
on top management's statement of organizational purpose.
The "vision of the organization" provides consistent goals
and objectives supported by sound strategic and tactical
plans .
292
292 Ibid. , p. 3 -4
.
76
Second, the basis for continuous improvement is
commitment to quality. Quality in this context must range
in definition from "conforming to specifications" to "an
intangible but perceived inherent goodness." 293
Third, customer focus and involvement is essential for
process improvement. Mansir and Schacht assert that
"attracting, serving and retaining customers is the ultimate
purpose of any organization." 294 They say that "those
customers help the organization frame its quality
consciousness and guide its improvement effort.
"
29E Scholtes
distinguishes between internal and external customers. 29 '
External customers are those who purchase or use the
organization's products or services whereas internal
customers are "fellow employees whose work depends on the
work that precedes them." 297
Fourth, the most effective means to address customer
expectations is to focus on process improvement. Where
traditional management methods focus on post -production
inspection and rejection of defective products, the
Continuous Improvement Process forces management to focus on
293 Ibid., p. 3-5.
294 Ibid., p. 3-7.
295 lbid.
296 Scholtes, p. 1-11.
297 Ibid.
77
the process. 298 This process oriented approach deals with
the collection, timing, feedback and management response to
measurement data.
Fifth, the fundamental principle of the CIP is
continuous improvement. 299 The key to continuous improvement
is integrating both innovative and small incremental changes
to the process. Innovation in the form of new technologies
or new ways of thinking is characterized by large changes
and dramatic improvement of performance, while frequent
small changes result in steady process improvement
.
3t
Sixth, system-centered management requires managers to
constantly improve the system by which work is
accomplished. 301 The traditional approach was to accomplish
work according to set procedures and established processes,
failing to make system-centered improvements.
Seventh, investment in knowledge emphasizes improvement
of human potential and growth. Personal knowledge,
teamwork, security and personal involvement are expanded by
increased education and training. Through improved job
skills and abilities, and better understanding of the work
29aMansir and Schacht, pp. 3-8 - 3-9
299 Ibid., p. 3-10.
300 lbid., p. 3-11.
301 Ibid., p. 3-14.
78
process, employees will become better able to recognize and
eliminate problems. 302
Eighth, teamwork is essential to the success of
continuous improvement in an organization. Process
improvement teams are developed throughout the organization,
translating specific goals and objectives into action.
Teamwork applies to all levels in the organizational
structure. Scholtes emphasizes that "the notion of a common
struggle for quality also applies to relationships with
suppliers, regulating agencies and local communities." 303
Ninth, the principle of conservation of human resources
recognizes that people are an organization's most important
asset. 304 Management creates a working environment in which
employees are encouraged to suggest better ways to
accomplish work. Management stimulates, recognizes and
awards contributions of all its people.
Tenth, the principle of total involvement ensures that
every member of the organization participates in continuous
improvement both at the individual and team levels. 3( The
employees are given the authority to make decisions and
initiate improvement actions within their own work areas.
302 Ibid., p. 3-17.
303 Scholtes, p. 1-13.
304Mansir and Schacht, p. 3-20.
305 Ibid., p. 3-22.
79
Management respects and trusts employees to exercise self-
discipline and self -direction.
Lastly, perpetual commitment ensures that continuous
improvement is a steady, long-term effort. Management has
the responsibility to "encourage and facilitate positive
change" and support creative improvement initiatives of the
work force. 2 Each member of the organization must
recognize a personal role and make a commitment to
continuous improvement.
Robert D. Martin, the chairman of Martin Paving
Company, says that Total Quality Management has four basic
principles. He calls these principles the "Four Cs of
Quality" :
307
- Commitment to error free work.- Continuous improvement.- Concentration on prevention.- Customer knowledge.
Martin attests that Total Quality Management (TQM)
differs from traditional quality assurance programs in
several ways. Martin says "the TQM definition of quality is
more customer oriented than product oriented." 308 At Martin
Paving Co., quality has a higher priority than cost,
schedule and even safety. 309 TQM companies make decisions
306 Ibid., p. 3-25
307Robert D. Martin, "'Total quality' BoostsPerformance," Roads and Bridges , July 1992, p. 19.
308 lbid.
309 lbid.
80
based on long-term goals rather than short-term
objectives. 310 Martin's approach focuses on improving the
process and satisfying the customer rather than evaluating
whether they can place a certain tonnage of asphalt per
day. 311 TQM focuses on the prevention of errors and
continuous improvement where traditional quality assurance
programs concentrate on the detection of errors. 312 Martin
claims that productivity increases and costs decrease in a
TQM environment. 313
The TQM approach involves all employees in the quality
process whereas a typical quality assurance program places
the responsibility of quality only on quality assurance
inspectors. 314 Martin suggests that "the concept of TQM
contributes to continuous improvement, innovation and risk
taking throughout the corporation." 315 He asserts that
quality assurance programs promote "f ingerpointing, blame
finding, punishing risk takers and shooting the
messenger. " 316
310 Ibid.
311 Ibid.
312 Ibid.
313 Ibid.
314 Ibid.
31c,
Ibid.
316 Ibid.
Martin advocates a TQM company that is "fluid and
integrated" with a flat organizational structure. 317 He says
a quality assurance organization "tends to be hierarchical,
bureaucratic and static." 318 The TQM approach involves all
employees in problem solving and recognizes them for their
efforts. Martin claims that problem solving is performed
only by senior management under the traditional approach. 3
Open communication is encouraged at the Martin Paving Co.
Martin says that "information is shared with the workers for
use in their quality improvement teams." 320
Martin challenges the construction industry to adopt
the TQM approach. He maintains that "constructors are 15
times more likely to prefer to work independently, resulting
in lower quality work, higher costs and more litigation." 321
He firmly believes that the TQM approach will result in more
profits, reduced costs, enhanced safety and "a better
reputation for the construction industry as a whole." 322 He
says that "quality assurance programs are just not enough"
to ensure continuous improvement. 323
317 Ibid.
318 Ibid.
319 Ibid.
320 Ibid.
321 Ibid.
322 Ibid.
323 Ibid.
82
CHAPTER 3
TOTAL QUALITY MANAGEMENT IMPLEMENTATION
QUALITY IN CONSTRUCTION
The American Society of Civil Engineer's Guide to
Quality in the Constructed Project describes the principles
and procedures for achieving quality in the constructed
project. 324 The suggestions and recommendations in the guide
parallel the principles of Total Quality Management.
The guide defines quality in the constructed project
as :
. . . meeting the requirements of the owner, designprofessional and the constructor as specified in thecontract, while complying with laws, codes, standards,regulatory rules and other matters of public policy. 325
The guide includes the regulatory agency as a "partner"
along with the three other participants. 326 The quality in
the constructed project is attained through teamwork among
the participants, working together to achieve mutual goals.
The guide describes specific responsibilities of each
team member. The owner is responsible for project
definition and organization, for financial and site
acquisition arrangements, for administration of contracts
324American Society of Civil Engineers, Quality in theConstructed Project (New York: American Society of CivilEngineers, 1990), p. xxi
.
325 Ibid.
326 Ibid.
83
and for operation and maintenance of the completed
facility. 327 The design professional is responsible for
planning and design, preparation of the construction
contract, and construction observation and technical review
of submittals prepared by the constructor. 328 The
constructor is responsible for construction of the project
facilities as specified in the contract, for job-site safety
and for protection of public health, safety and the
environment
.
329
The guide suggests that "quality in the constructed
project results when the state of mind of those involved in
the project places quality foremost." 330 Effective
communication and mutual understanding between participants
are essential for attainment of quality. All participants
must make a determined effort to resolve the problems that
are routinely encountered during the construction process. 3
There are several themes presented in the guide that
are important to the quality process. The principal themes
include the definition and assignment of responsibilities,
importance of teamwork, understanding requirements and
expectations, principles of good communication, owner's
3/:7 Ibid. , p. xxiv,
328 Ibid.
329 Ibid.
30 Ibid. , p. xxv.
331 Ibid.
84
Ouner
'
3 Ouner
Team
i
Project
Manager
Desi gn
Professional— — — — — — — — Const rue tor
Desi gn — — — — _ Const rue
t
ion
Te am Team
Lines of author] tg
(Defined bg contract)
Lines of communication
Figure 20 Project team organization.
selection processes for project team members and other
important factors which contribute to quality in the
constructed project. 332
The guide discusses two significant factors that
contribute to achieving quality. First, the owner develops
"complete and realistic expectations and requirements for
the project." 333 Second, the team members must acquire a
332 lbid., p. 1.
333 Ibid., p. 5.
85
thorough understanding of the owner's role and
responsibilities .334
The construction project team consists of an owner,
design professional and constructor, each competently
fulfilling their obligations in an atmosphere of "harmonious
cooperation". 335 The owner monitors and coordinates the
activities of the other participants throughout the
planning, design and construction process. 3 The guide
suggests that "the owner may discharge these
responsibilities more effectively by delegating authority to
a project manager." 337
Figure 20 illustrates the typical project team
organization. 338 The guide stresses that there are other
successful organizational arrangements such as the design-
construct firm which performs both design and construction
work under one contract.
Effective coordination and communication are essential
elements in the quality construction process. The guide
states "coordination translates to effective
implementation." 339 It also emphasizes the need for
334 lbid.
335 Ibid., p. 12.
336 Ibid., p. 13.
337 Ibid.
338 Ibid., p. 9.
339 Ibid., p. 14.
86
Participant Project Design Construction ProjectBeginning Phase Phase Completion
Owner Forming and Contributing Providing for Maintaininginforming the to decisions qualified groupgroup
.
in support of inspection and coordinationLeading in design testing as and gettingoutlining reviews
.
required by the group '
s
project Participating contract attention onrequirements in design documents and follow-up orfor the reviews
.
regulatory completiondesign Communicating agencies
.
items
.
professional
.
changes whennecessary.
Administeringcontracts
.
Design Assisting Leading the Technical AssistingProfessional with project design effort. support for with follow-
objectives Involving the required up work,and program owner and interpreta- completingrequirements
.
others at tions , requiredLeading the appropriate changes , shop manuals anddevelopment times
.
drawings
,
documents
,
of process Preparing reviews or assistingfor necessary field with start-coordination design plans problems, in a up.among team and specifica- timely way.members
.
tions . Fieldobservation
.
Constructor Being an Assisting in Performing the Leading theearly vender construction follow-up
.
participant
.
selection and effort. GuidingContributing construct - Involving vendor andto ability others at sub -
alternative reviews
.
appropriate contractorstudies and times, such as follow-upscheduling. shop drawing s
,
inspections
,
tests, etc.Field
work
.
observation
.
Table 1 Roles of project team members.
commitment by team members to facilitate good
communication. 340 Table 1 describes the principal roles of
each team member in coordination as the project progresses
from start to completion. 341
The guide recommends that owners follow the procedures
used by federal and state agencies, specified in the Brooks
340 lbid.
341 Ibid., p. 15
87
and mini -Brooks laws, in their procurement of professional
design services. 342 Responding to an owner's invitation and
statement of requirements for a specific project, the design
professional submits statements of interest and
qualifications. The owner evaluates the responses according
to criteria included in the invitation. Selection of the
design professional is made after the owner conducts
personal interviews with the most qualified applicants.
Contract negotiations between the owner and the design
professional are conducted to define the scope of services,
schedule and compensation plan.
The selection process allows the owner not only to
select the most suitable design professional but also
provides the opportunity to establish a cooperative
relationship between the two parties. The procedures
provide the groundwork for developing a long-term
relationship similar to the single supplier relationship
advocated by Deming.
The team approach to the construction process is
applicable at the project conceptualization and planning
stage. The owner, design professional and constructor (if
available) jointly participate in formulating, investigating
and studying alternative approaches to execution of the
project. 343 These alternative studies include a variety of
342 Ibid., p. 22
343 Ibid., p. 27
processes relating to such items as site selection,
schedule, materials and equipment. 344 The physical, economic
and social implications of the project are also analyzed in
this joint effort. 345
The guide advises that the design professional can
avoid "threats to quality" by: 346
- Developing the scope of services to meet projectrequirements
.
- Developing the work plan for the design phase of theproject
.
- Estimating accurately the hours of effort requiredand cost involved to achieve a quality design.
- Recognizing that most programs are incomplete, thatchanges are inevitable and that budgets and schedulesusually need to be revised accordingly.
- Developing a realistic schedule.
The guide emphasizes the importance of including
associate consultants in the development of the scope of
services. 347 Likewise, it cautions against the use of
competitive bidding in obtaining professional services
because making a selection without proper consideration of
qualifications and scope will severely threaten quality. 348
Avoiding threats to quality includes the assignment of
experienced and knowledgeable personnel to the design team
344 lbid.
34S lbid.
346 Ibid., p. 33
347 Ibid.
348 Ibid.
89
Ouner
Ouner ' s Resident
Proiect Representative
Designc
Professional
uppor t —Const rue tor' s
Const rue t i on
Supervi sor
Material and
Equi pment
Supp] iers
Support
Servi ces
Craf t
Super-
1 ntendents
Sub-
con t rac tors
Qual i ti_|
Cont rol
L i nes of author it
y
(Del ined by cont rac t )
Lines of communication
Figure 21 Field organization for construction.
as well as information-gathering and field survey teams. 349
The importance of training and education is evident in
performing design functions that enhance the quality
objectives of the project team.
The owner is responsible for assembling a construction
team for field operations that complements the project team
organization. 3- The construction team must have the
capability to build a quality facility while complying with
349 Ibid
350 Ibid., p. 51
90
appropriate safety, schedule and budget requirements. 3"
1 The
owner's resident project representative provides team
leadership and direction in the day-to-day administration of
the design and construction contracts. 3 - 2 Figure 21 shows
the organization of a typical field construction team. 31
The guide attests that "quality depends on the competence
and integrity of each team member." 354
The guide describes specific responsibilities of each
team member that "cannot be altered without threatening
quality in the constructed project." 355 These
responsibilities are: 356
- The owner is responsible for contract enforcement andstopping work (except in emergencies)
.
- The design professional is responsible for design anddesign changes and interpretation of designrequirements
.
- The constructor is responsible for constructionmeans, methods, sequences, direction of work, jobsafety and completing the project construction to alevel of quality in accordance with the requirementsof the contract documents.
351 lbid.
352 Ibid., p. 54.
353 Ibid., p. 52.
354 Ibid., p. 54.
355 Ibid., p. 65.
356 Ibid.
91
The owner's resident project representative implements
procedures for reviewing and evaluating the quality of
construction. 37 In situ (natural or original) materials and
procured materials are evaluated to determine if they meet
acceptable quality standards. Laboratory testing and
engineering evaluation are often required for in situ
materials
.
The specifications outline the minimum quality
standards and qualification methods for procured materials
such as structural steel, asphalt, concrete, paint and
mechanical and electrical equipment. There are also several
organizations such as the American Society for Testing and
Materials (ASTM) and the American National Standards
Institute (ANSI) which provide information on qualification
and acceptance standards for a variety of materials and
products
.
The guide states that practices for determining minimum
levels of acceptance for workmanship are more subjective in
many instances. 358 For example, structural requirements like
soil compaction or tightness of bolts are well defined, but
the acceptability of concrete wall finish requires more
"subjective judgements". 359
357 Ibid., p. 71
3S8 Ibid., p. 72
359 Ibid.
92
The guide discusses the "trend in the construction
industry toward statistical analysis for quality control by
constructors and suppliers, and for statistically based
acceptance criteria by owning agencies." 360 It states that
the American Concrete Institute (ACI) provides details on
statistically based acceptance procedures for concrete and
that reports on statistically based specifications are
available from the Transportation Research Board. 361 This
increased emphasis on statistical methods complements
Deming's view that statistical process control is essential
to the quality transformation of Western organizations.
There are several definitions of Quality Assurance and
Quality Control. The guide defines these functions as
follows: 362
- Quality Assurance (QA) comprises all those plannedand systematic actions necessary to provideconfidence that items are designed and constructed inaccordance with applicable standards and as specifiedby contract.
- Quality Control (QC) comprises the examination ofservices provided and work done, together withmanagement and documentation necessary to demonstratethat these services and work meet contractual andregulatory requirements.
Thus, these functions comprise a comprehensive effort to
successfully attain quality in contracting. Total Quality
360 Ibid.
361 Ibid.
362 Ibid., p. 84.
93
Management, however, includes not only Quality Assurance and
Quality Control but also Customer Focus and more:
Total Quality Management = Quality Assurance
+ Quality Control + Customer Focus + More
The Naval Facilities Engineering Command Contracting
Manual (P-68) views the process differently than Guide to
Quality in the Constructed Project. The manual defines
Quality Control as "the contractor's management and control
of his own, his suppliers', and his subcontractors'
activities to comply with contract requirements." 363 The
Contracting Manual further defines Quality Assurance as "the
means by which the Government fulfills its responsibility in
assuring that the contractor's Quality Control system is
functioning and through reviews, surveillance and testing
assures the completed product complies with the contract." 364
Quality Management is defined by the Contracting Manual as
"all control and assurance activities to achieve that
quality which is established by the contract." 365
363Contracting Manual, NAVFAC P-68 , Change 87-02(Alexandria, Virginia: Naval Facilities EngineeringCommand, Department of the Navy, 1987), p. 176.
364 Ibid,
36S Ibid
94
Therefore, quality is defined in the realm of
Government contract administration as the degree at which
the physical condition of the end product conforms to the
requirements set forth in the contract plans and
specifications. Quality Assurance is the process of
confirming that the product conforms to the contract plans
and specifications. Objective Quality Assurance methods
consisting of measurable criteria are used in evaluation of
performance. Quality Assurance is the sole responsibility
of the Government and is not a substitute for Quality
Control
.
Quality Control is the process in which the contractor
ensures that the product conforms with the specifications.
The contractor also provides acceptable and competent
workmanship, proper equipment and materials, and timely
services. The contractor is responsible for providing and
maintaining an adequate inspection system and maintaining
complete and accurate records of all completed inspection
work. The responsibility of quality is therefore fixed on
the contractor.
Quality is defined differently depending on your
perspective. If a product conforms to the producer's
specifications, the quality of the product is considered
"quality- in- fact"
.
366 On the other hand, if the products and
366Facility Support Contract Quality ManagementManual, MO- 327 (Alexandria, Virginia: Naval FacilitiesEngineering Command, Department of the Navy, 19 89) , p. 3
95
services meet the customer's expectations, the quality is
considered "quality- in-perception"
.
3S7 Therefore, true
quality is achieved when the product not only complies with
specifications, quality- in- fact , but also meets the
customer's expectations, quality- in-perception.
The Government definition of Quality Management above
endeavors to achieve a quality- in- fact product or output.
But successful Quality Management depends on attainment of
both quality- in- fact and quality- in-perception. True
quality is only attained when the specifications reflect as
closely as possible the quality expectations perceived by
the customer. Thus, effective Quality Management goes
beyond achieving the quality established by the contract.
The effort not only includes control and assurance
activities to achieve the quality specified in the contract
but also a dedicated Customer Focus on meeting and exceeding
customer expectations. The process is referred to as Total
Quality Management because it is based on a total commitment
by every member of the organization in addition to Quality
Assurance and Quality Control activities and a dedicated
Customer Focus.
The Guide to Quality in the Constructed Project
indicates that the owner, assisted by the design
professional, develops the Quality Assurance and Quality
Control program requirements during the early stages of the
367 Ibid.
96
project. 368 The design professional prepares and implements
the program during the design phase. 369 The design
professional employs quality management procedures "to
improve thought processes, clarify communications among team
members and to transfer the concepts and mental images of
the project ... to physical structures and systems to be
built by the constructor." 370 The constructor's role is to
comply with contract quality requirements during the
construction phase of the project. The guide stresses that
quality depends on total commitment and mutual understanding
by all the team members.
Donald S. Barrie and Boyd C. Paulson discuss another
view of the quality process. They describe Quality
Engineering as:
. . . procedures used to ensure that the engineeringand design for a structure proceed according torecommended and mandatory criteria set by relatedprofessional and trade associations, building codeauthorities and federal, state and local organizationssuch as the Environmental Protection Agency, theNuclear Regulatory Commission, the Occupational Safetyand Health Administration and others. 371
368American Society of Civil Engineers, p. 84
369 Ibid.
370 Ibid.
371Donald S. Barrie and Boyd C. Paulson, Jr.,Professional Construction Management (New York:McGraw-Hill, Inc., 1992), p. 372.
97
The process of Quality Control includes 372
- Setting specific standards for constructionperformance, usually through plans andspecifications
.
- Measuring variances from the standards.- Taking action to correct or minimize adversevariances
.
- Planning for improvements in the standards themselvesand in conformance with the standards.
Barrie and Paulson explain that the definition of Quality
Assurance is not "well standardized" 373 They say that
Quality Assurance broadly encompasses "the application of
standards and procedures to ensure that a product or a
facility meets or exceeds desired performance criteria." 374
Barrie and Paulson suggest that the "basic elements of
quality" include quality characteristics , quality of design
and quality of conformance.1' 1 '' Figure 22 shows the
relationship between these elements of quality. 376
372 Ibid.
373 lbid.
374 Ibid.
375 Ibid.
376 Ibid., p. 374
98
Design
criteria
Engineer 1 nqand design
process
Techni cal
spec 1 H cat i ons
Field
const rue t i on
methods
Superv 1 si on
and
cont rol
Degree of
conformance to
speci Heat ions
Qual l tig of
const ructed
facil l tu
Figure 22 Basic elements of quality.
Quality characteristics are "properties that define the
nature of a product for quality control purposes" such as
dimension, color, strength or temperature. 377 The owners
needs and specified quality characteristics are delineated
by the design criteria used in the engineering and design
process for development of the technical specifications.
The quality of design is a function of this process. The
quality of design involves the tolerances or ranges for
acceptable variation from the standard specified for the
377 Ibid., p. 372.
99
product. 3;fl The designer must evaluate the impact on initial
cost of higher standards of quality or less variation as
well as the effect on life cycle costs of using inferior
materials or allowing more variation. The quality of
conformance is the extent to which the construction effort
complies with the specified standard. 379
The Partnering process is a new concept in the
construction industry that compliments Total Quality
Management. Partnering involves the members of the
construction team in the development of a strategy for the
purpose of avoiding disputes, fostering a cooperative spirit
and facilitating successful completion of the project. The
key elements to the Partnering concept include commitment,
equity, trust, development of mutual goals and objectives,
implementation of the mutual goals, continuous evaluation
and timely responsiveness. 380
378 Ibid., p. 373
379 Ibid.
380The Associated General Contractors of America,Partnering: A Concept for Success (Washington, D.C. : TheAssociated General Contractors of America, 1991), p. 2.
100
QUALITY CONTROL TECHNIQUES
The are several types of charts that are useful for
presenting data and understanding processes. These charts
include the cause-and-ef f ect diagram, flow chart, Pareto
chart, run (trend) chart, histogram, control chart and
scatter diagram. Diane Ritter's depiction of these useful
charts is shown in figure 23. 381
The cause-and-ef feet diagram is useful in problem
solving. The causes are often grouped into major categories
such as Method, Manpower, Material and Machinery. The
possible causes in each category are explored to determine
the most significant causes which produce the effect.
Figure 24 shows a typical cause-and effect diagram.
Kaoru Ishikawa describes cause-and-ef feet diagrams as
an effective tool "to clearly illustrate the various causes
affecting quality by sorting out and relating causes." 382
For example, figure 25 shows the cause-and-ef feet diagram
for wobbling during machine rotation. 383 The main line of
the diagram follows the production process and everything
that affects the quality is included at each step in the
process
.
381Walton, p. 98.
3fl2Kaoru Ishikawa, Guide to Quality Control (WhitePlains, New York: Asian Productivity Organization, 1982),p. 25.
383 Ibid., p. 23.
101
SevenHelpfulCharts
2
Flow Chart
s5
Run (Trend) Chart
Time
Control Chart
-----
—
-%- UCL
* r^\ a \ X
/ v V/ Y LCI
Measurement Time
Cause-and-Effect
Pareto Chart
Type
Histogram
Measurement
Scatter Diagram
Variable 1
—Diane Ritter
Figure 23 Useful charts for presenting data andunderstanding processes.
102
METHOD MATERIAL
<^T^ „ A
EFFECT
V „
X Z^^-
NANPOUEP MACHINERY
Figure 24 Cause-and-ef f ect diagram.
Tool making —^—^TDesign
Tools I G resistor
Accuracy
Axle
Inspection
Measurement
Axle bearing Gauge _|easuring standard
Judgement
VWorkers
Axle hole
F cover
7 Cover caulking
Cover
IVer / F /
\ / r-\ >LA l.r Axl
Axle bearing£ Wobble
Body G Axle
Axle caulking
Punch
Figure 25 Cause-and-ef feet diagram for wobbling
103
Scheduled
delivery
Inspection
Unload
Enter material
into inventory
Figure 26 Detailed flow chart of suppliesreceiving process.
104
40-
g 30-
a- 20-0)
io- r
2s
3
10s
11
202*1
30s
31
JH.40 Cases/Day
41
Figure 27 Failure occurrence distribution.
Ishikawa discusses the benefits of using cause-and-
effect diagrams. The primary benefits include: 384
- The preparation of the diagrams are educational forall the participants.
- The diagrams help the group to focus on the topic ofdiscussion.
- The process results in an active investigation of thecauses of the quality characteristic.
- The cause-and-ef f ect diagram requires datacollection.
- The "level of technology" of the workers isdemonstrated by the cause-and-ef feet diagrams.
- The cause-and-ef feet process is applicable to anyproblem.
384 Ibid., pp. 25-27.
105
The flow chart is helpful way of representing and
understanding a process. Comparison of the actual work flow
with how the process should work "can turn up redundancy,
inefficiency and misunderstanding." 385 Figure 26 shows a
detailed flow chart of a supplies receiving process. 3f
A histogram is a bar graph used to measure the
frequency of an event or occurrence. Figure 27 illustrates
the use of a histogram. This histogram portrays the number
of daily machine failures to assist in preventive
maintenance
.
387
The Pareto diagram is used to prioritize problem areas
in a process. The idea implies that rather than
concentrating on the least important sources of problems one
should concentrate on the essential few. Figure 28 shows
how Pareto diagrams are used to measure the improvement in a
process. 388 The figure diagrams the process defects before
and after improvements were made, allowing comparison of the
various sources of problems and the impact of the
improvements
.
385Walton, p. 102.
386 Scholtes, p. 2-21.
387 Ishikawa, p. 12.
388 Ibid., p. 49.
106
Before improvement
(cases)
S % \ * <*. % 9-V w%NS
After improvement
Overall
effect
_*
Percent
50 distribution
* <v -9L \ "?. <» °*
\2>
•
Figure 28 Pareto diagram for process defects.
u
IO
J5
1
I
\ \\ / \\ I
/
\'
\ K \V r\/ /
>;
V /
25
*v
20
ISMTWTF MTWTFMTWTFMTWTF' Week 1 Week 2 Week 3 Week 4
Figure 29 Run chart for documenting travel time.
107
•>:••*/• 1 . Positive correlation
2. Positive correlation
may be present
• • *.•• ••• . . • • •
. •• •
No correlation
Negative correlation
may be present
•*•*
**V
Negative correlation
Figure 30 Various plot patterns in scatter diagrams.
Run charts are used to evaluate trends based on data
charted over a period of time. Figure 29 shows a simple run
chart that documents the travel time to work. 389
389Walton, p. 108.
108
Eu
£o
'c
Co
200
x
100
Defective
Upper control limit ~- Specification for
individual items
Lower control limit
Distribution of xDistribution of x for individual—
'
' ' ' items5 10 15 20 25
Ordinal number of sample (in order of production)
Figure 31 Control chart for test of uniformityof wheels.
The scatter diagram shows the relationship between two
types of data. Figure 30 illustrates the various plot
patterns in scatter diagrams. 390 The scatter diagram may
indicate a positive or negative correlation between
variables, or no correlation.
A control chart is a run chart with upper and lower
control limits above and below the process mean or average.
The upper and lower control limits are an indication of
390 Ishikawa, p. 91
109
process variation prior to making modifications to the
process. 391 Figure 31 shows a control chart for testing of
the uniformity of wheels produced by a production worker. 392
391Walton, p. 114
392Deming, p. 372
110
STATISTICAL QUALITY CONTROL
Barrie and Paulson suggest that statistical quality
control is categorized as either (1) quality characteristics
that can be measured or (2) qualitative observations or
attributes. 393 Measurable quality characteristics include
such items as spacing of columns, compaction density of
earth, shear and compressive strength for structural lumber
and spacing of reinforcing bars. 394 Qualitative observations
include such items as "light bulbs that do or do not
illuminate, welds which do or do not pass inspection,
electronic control elements that do or do not work, etc." 395
Statistical properties such as measurements of central
tendencies (mean, mode and median) and measures of
dispersion (range, variance and standard deviation) are
important to the quality control process. The central
tendency and dispersion are frequently documented using
control charts. Control charts are used to record the
average and range of samples, and the average and standard
deviation. 396 Barrie and Paulson demonstrate the use of
control charts by documenting the average and standard
393 lbid., p. 384.
394 lbid.
395 Ibid.
396 lbid.
Ill
(a) Mean Values
(b) Standard Deviations
Successive Quality Control Tests *•
(c) Distributions
Figure 32 Control charts for mean and standarddeviation.
deviation of concrete compressive strengths. These control
charts for mean and standard deviation are shown in
figure 32. 397
397 Ibid., p. 385
112
Figure 32a shows the average or mean of consecutive
batches of concrete cylinder breaks. Mean values are
indicated on the vertical axis and consecutive tests
progress from left to right on the horizontal axis. The
tests in range A represent typical performance with good
quality of design and good quality of performance. Figure
32b presents the standard deviation for each of the tests,
and figure 32c shows the graphical distribution of specific
strengths within each batch.
The mean in range B is higher in comparison to the mean
in range A, perhaps through overdesign of the concrete
mix. 398 Yet, the quality of conformance to the higher
standard is about the same, represented by the standard
deviation about the mean. 399 The mean in range C is lower
than the desired strength, but the quality of conformance is
also consistent.
The test results in range D fluctuate about the mean,
but the results are widely disperse with larger standard
deviations. This situation indicates a lack of control over
construction procedures and quality of conformance. 400
398 Ibid., p. 384.
399 Ibid.
400 Ibid.
113
Barrie and Paulson suggest that the gradual trend
toward increasing strengths indicated in range E "might
indicate continuous wear on a key component in the process —
possibly the mechanism that closes the gate that lets the
cement into the concrete batch." 401 This observation is an
example of how statistical quality control techniques can be
used to uncover problem areas in the construction process.
Barrie and Paulson discuss the second category of
statistical quality control which deals with sampling by
attributes. They explain that "random sampling is used as
an economic measure to reduce the expense of testing every
unit produced, or in situations involving destructive
testing where the element tested is intentionally tested to
failure." 402 The premise behind random sampling is that a
sample taken from a lot will statistically represent the
whole. The reliability of the results increases as the
sample size increases. The drawback is that increasing the
sample size also increases the cost.
Figure 33 demonstrates the risk and uncertainty in
random sampling. 403 The acceptable limit of defectives or
quality level is 4 percent. The horizontal axis shows the
actual percent defective in a lot and the vertical axis
indicates the probability "that a random sample from a lot
401 Ibid., p. 385
402 Ibid., p. 386
403 Ibid., p. 387.
114
/Producer Risk
4 8 12
Actual Percent Defective in Lot
16
Figure 33 Risk and uncertainty in random sampling.
will show less than 4 percent to be defective." 404 In this
case, figure 33 shows that if the lot is 8 percent
defective, "there is a 50 percent chance that the sample
would contain only 4 percent defectives, and thus allow the
whole lot to be accepted." 405 The shaded area to the left of
the 4 percent defective line is referred to as the "producer
risk" . This area represents the probability that a random
404 Ibid., p. 386.
405 Ibid.
115
sample would reject a satisfactory lot. 406 The shaded area
to the right is referred to as the "consumer
risk" . This area "would have to be handled through repair
or replacement warranties, or simply have to be absorbed by
the consumer." 407
406 Ibid.
407 Ibid.
116
MALCOLM BALDRIGE NATIONAL QUALITY AWARD
Public Law 100-107 created the Malcolm Baldrige
National Quality Award "to promote awareness of quality as a
key element in strengthening the position of U.S. business
in domestic and international markets.
"
4j7 The criteria for
the award includes: 408
- Promotion of quality awareness.- Identification of requirements for qualityexcellence.
- Analysis and diagnosis of an organization's qualitymanagement system.
The Malcolm Baldrige National Quality Award criteria
emphasizes both customer satisfaction and continuous
improvement. Organizations have both internal and external
customers. J. P. Russell portrays customer involvement in
the Customer Interaction Venn Diagram shown in figure 34. 4f
Russell asserts that continuous quality improvement is
dependent on responsiveness to the needs of both internal
and external customers. 410
407J. P. Russell, Quality Management BenchmarkAssessment (Milwaukee, Wisconsin: ASQC Quality Press,1991) , p. 1.
408 Ibid.
409 Ibid., p. 3.
410 Ibid., p. 2.
117
EXTERNAL CUSTOMER
Marketing & Sales ManufacturingQuality Assurance AccountingQuality Control Customer ServiceDistribution Technical
Service
(External &Internal
)
Business Management Human ResourcesPurchasing Financial
Technology &: EngineeringInformation Systems
Support Services
SUPPLIER FUNCTIONS
Figure 34 Customer Interaction Venn Diagram.
Continuous quality improvement exists when the
organization thrives on methods and processes that foster
continuing improvement. The methods and processes should: 411
- Reduce variation.- Eliminate root causes when defects or errors occur.- Prevent occurrence of defects or errors.- Promote customer feedback — both internally andexternally.
411 Ibid
118
Specific business practices and processes are required
for continuous quality improvement. Russell says an
organization needs: 412
- A process or system to reduce variation, such asmaintaining statistical quality control (SQC)techniques as an integral part of your processcontrol philosophy.
- A prevention style of management. Prevention has twoaspects: Preventing recurrence and preventingoccurrence. Preventing recurrence means not puttingout the same fires over and over again, but tracingand correcting the root cause of each error ordefect. Preventing occurrence means doing it rightthe first time whenever a new product, service orprocess is introduced. A preventive style ofmanagement addresses both aspects.
- A system for data collection and customer feedback.An open line of communication between internal andexternal customers is essential.
The first recipient of the Malcolm Baldrige National
Quality Award was the Motorola Corporation. Motorola
describes the term sigma as "a statistical unit of
measurement that describes the distribution about the mean
of any process or procedure." 413 Six Sigma is "a defect rate
of no more than 3.4 per million; statistically, allowing for
some variation in mean, this approaches zero
defects. . . ." 414
412 Ibid. , p. 4
413Motorola, Inc., "Quality Renewal," Information packetfrom Motorola's Malcolm Baldrige National Quality AwardOffice, p. 3.
414 lbid.
119
At Motorola, Six Sigma is another expression for
quality. The corporation's development of a six step
methodology was a significant step toward achieving their
milestone of Six Sigma quality. The six step process was
first developed to achieve improvement in manufacturing.
Later, the process was expanded to non-manufacturing
functions
.
Motorola's six steps to Six Sigma quality in
manufacturing are: 415
1. Identify product characteristics necessary tosatisfy customer physical and functionalrequirements
.
2. Classify identified characteristics as:- Part- Process- Both
3. Determine whether classified characteristic iscontrolled by:- Part- Process- Both
4. Determine maximum allowable tolerance for eachclassified characteristic which still guaranteessuccessful performance.
5. Determine process variation for each classifiedcharacteristic.
6. Change design of product, process or both toachieve Six Sigma capability.
Motorola's six steps to Six Sigma quality in non-
manufacturing are: 416
1. Identify the product you create or the service youprovide.
2. Identify the customer (s) for your product orservice, and determine what they considerimportant
.
415 Ibid. , Inside cover
416 Ibid.
120
3. Identify your needs (to provide product/service sothat it satisfies the customer)
.
4. Define the process for doing the work.5. Mi stake -proof the process and eliminate wasted
effort.6. Ensure continuous improvement by measuring,
analyzing and controlling the improved process.
Identifying the product, product characteristics or
service is the first step in both the manufacturing and non-
manufacturing methodologies. Motorola suggests that this
step is not as simple as it appears. Identifying the
customer and their needs is both difficult and important.
The corporation must understand what the customer wants and
needs in their products in order to direct their product and
service lines to meet those wants and needs.
Consequently, Motorola's Six Sigma quality initiatives
began after establishing their product and clientele. They
looked at ways within the organization to provide total
product quality. Through customer interface, Motorola
concluded that building and marketing good quality products
within acceptable defect rates was not enough to remain
competitive within today's market. Customers want and
expect perfection built into every product they purchase.
Motorola also studied the relationship between a
product's early- life field reliability and the frequency of
repair during the manufacturing process. They found that
"if during a product's manufacture you have to identify and
fix defects incurred during its manufacture, you will miss
defects that will affect the customer during the early life
121
of the product." 417 Conversely, Motorola concluded that "if
your designs are robust and your manufacturing procedures
are controlled so that virtually everything works right the
first time, you are highly likely to ship products that will
be free from failure in their useful life." 419
Motorola claims that the Six Sigma process has been a
critical factor in their success in continuous quality
improvement. There has been a trend toward new invention
"because the pursuit of Six Sigma quality has required
dramatic changes in processes and renewal of work flows." 419
Motorola"s conclusions and concept of "robust" design
corroborates the message portrayed in Deming's Red Bead
Experiment. Walton describes the "moral" of the experiment
as: 42C
Variation is a part of any process.Planning requires prediction of how things and peoplewill perform. Tests and experiments of pastperformance can be useful, but not definitive.Workers work within a system, not their individualskills, that determines how they perform.Only management can change the system.Some workers will always be above average, somebelow.
417 lbid., p. 3
418 lbid.
419 lbid
420Walton, p. 51.
122
Motorola's key goals are to be the best in their class
by outperforming their competition, to increase their market
share and to improve their financial standing. 421 These
fundamental goals are shared by most civil engineering and
construction organizations. Yet, these organizations as a
whole have not placed as much priority on providing
customers with superior quality products and services. By
implementing Motorola's six steps to Six Sigma quality,
construction organizations are more likely to improve their
chance of achieving their customer, profit and market goals.
Motorola's fundamental objective of achieving total
customer satisfaction is enhanced by their relationship of
trust and respect with suppliers. Their approach to process
improvement involves working together with their suppliers
to achieve zero defects of incoming materials. This
emphasis on improving supplier relationships is clearly
applicable to the construction process.
The civil engineering and construction community has
the responsibility to design and build facilities that meet
customer needs and desires. Through commitment to quality
improvement, designers and constructors can meet the
expectations of customers and provide total customer
satisfaction.
421Motorola, p. 2.
123
SUMMARY
Total Quality Management allows construction
organizations to keep pace with rapidly changing conditions.
Through constant improvement of the quality of products and
services, Dr. w. Edwards Deming professes that organizations
are more likely to stay in business, decrease costs, improve
profits and capture markets.
There is a positive relationship between quality and
productivity. As the quality improves, costs decrease
because of less rework, fewer mistakes, fewer delays and
better use of equipment and materials. Consequently, there
is an associated improvement in productivity.
Successful organizations must establish a long-term
relationship of loyalty and trust with suppliers to improve
the quality of incoming materials and to decrease costs.
They must also focus on the needs and expectations of the
customer or consumer.
Management has the responsibility for improving the
system of production. Management must seek quality
improvement with constancy of purpose and total commitment.
The application of statistical methods is essential to
continuous improvement of processes.
Brian E. Mansir and Nicholas R. Schacht portray
Deming 's management concepts in terms of a "Continuous
Improvement Process" model. An organization dedicated to
124
continuous improvement creates a positive and dynamic
working environment, fosters teamwork, applies quantitative
methods and analytical techniques and focuses on total
customer satisfaction. The key elements of the Continuous
Improvement Process (CIP) are the organization's philosophy,
principles, practices and techniques and tools for
attainment of improvement goals.
The philosophy of an organization represents its shared
values, principles and concepts. The organization's
philosophy also contains a shared vision which guides the
thinking and actions of its members. The CIP organization
must establish a clear statement of purpose to unite and
focus each of its members. The policies of an organization
should reflect the fundamental principles of its philosophy
and the concept of continuous improvement. The Department
of the Navy, dedicated to continuous improvement, developed
a statement of mission, vision and guiding principles for
implementation of Total Quality Leadership Navy-wide.
Peter R. Scholtes advocates the use of project teams to
improve quality, productivity and processes. The role of
teams includes the identification of key processes or areas
needing improvement. Managers take part in guidance teams
that supervise project teams which are responsible for
finding problem solutions. Project teams not only focus on
quality improvement of processes but also instill the
principles of Quality Leadership throughout the
125
organization. Teams also aid in the development of internal
experts trained in quality improvement techniques.
The Ralph M. Parsons Company is an example of a design-
construction company dedicated to continuous quality
improvement. The company describes their quality
improvement initiatives as the Parsons Quality Improvement
Process (QIP) . The groundwork for the Parsons QIP is four
quality improvement fundamentals called "the absolutes of
quality". These fundamentals are presented as answers to
questions :422
- What is quality? Conformance to Requirements
- How do we achieve it? Prevention
- What is our performance standard? Zero Defects
- How can we measure quality? Cost of Doing Things
Wrong
Parsons outlines seven elements that comprise their
quality improvement program. The first four elements
constitute the fundamental structure of the QIP. These
elements are organization, education, awareness and
recognition. The remaining elements allow each Parsons
employee to set in motion the principles of quality
improvement. They are defining requirements, measurement
and corrective action.
422 Parsons, p. 1.
126
Deming argues that the "Western style of management
must change to halt the decline of Western industry, and to
turn it upward."^ 3 The system of improvement or
transformation is accomplished through the application of
Deming 's Fourteen Points and elimination of the Seven Deadly
Diseases and Obstacles.
The Fourteen Points are applicable to any type of
organization including a government agency, a manufacturing
company or a construction company. By adopting the Fourteen
Points, management sends a positive signal of continuous
improvement to employees, investors and customers alike.
Deming identifies deadly diseases that plague American
management and hinder progress toward transformation. The
most severe ones are referred to as the Seven Deadly
Diseases and those of less severity are called Obstacles.
Deming states that elimination of the diseases and obstacles
requires a "complete shakeup of Western style of
management ." 424
Complementing Deming' s management concepts, Mansir and
Schacht discuss the principles of continuous improvement.
These principles include (1) constancy of purpose,
(2) commitment to quality, (3) customer focus and
involvement, (4) process orientation, (5) continuous
improvement, (6) system- centered management, (7) investment
423Deming, p. 18.
424 Ibid., p. 97.
127
in knowledge, (8) teamwork, (9) conservation of human
resources, (10) total involvement and (11) perpetual
commitment.
Robert D. Martin, the Chairman of Martin Paving
Company, believes that Total Quality Management has four
basic principles. He calls these principles the "Four Cs of
Quality" :
425
- Commitment to error free work.- Continuous improvement.- Concentration on prevention.- Customer knowledge.
Martin challenges the construction industry to adopt
the TQM approach. He firmly believes that the TQM approach
will result in more profits, reduced costs, enhanced safety
and "a better reputation for the construction industry as a
whole." 426 He says that "quality assurance programs are just
not enough" to ensure continuous improvement. 427
The American Society of Civil Engineer's Guide to
Quality in the Constructed Project describes the principles
and procedures for achieving quality in the constructed
project. The suggestions and recommendations in the guide
parallel the principles of Total Quality Management.
425Martin, p. 19
426 lbid.
427 Ibid.
128
The guide describes specific responsibilities of each
team member. The owner is responsible for project
definition and organization, for financial and site
acquisition arrangements, for administration of contracts
and for operation and maintenance of the completed facility.
The design professional is responsible for planning and
design, preparation of the construction contract, and
construction observation and technical review of submittals
prepared by the constructor. The constructor is responsible
for construction of the project facilities as specified in
the contract, for job-site safety and for protection of
public health, safety and the environment.
There are several themes presented in the guide that
are important to the quality process. The principal themes
include the definition and assignment of responsibilities,
importance of teamwork, understanding requirements and
expectations, principles of good communication, owner's
selection processes for project team members and other
important factors which contribute to quality in the
constructed project.
The guide discusses the "trend in the construction
industry toward statistical analysis for quality control by
constructors and suppliers, and for statistically based
acceptance criteria by owning agencies." 428 It states that
the American Concrete Institute (ACI) provides details on
428American Society of Civil Engineers, p. 72
129
statistically based acceptance procedures for concrete and
that reports on statistically based specifications are
available from the Transportation Research Board. This
increased emphasis on statistical methods complements
Deming's view that statistical process control is essential
to the quality transformation of Western organizations.
The guide indicates that the owner, assisted by the
design professional, develops the Quality Assurance and
Quality Control program requirements during the early stages
of the project. The design professional prepares and
implements the program during the design phase. The design
professional employs quality management procedures "to
improve thought processes, clarify communications among team
members and to transfer the concepts and mental images of
the project ... to physical structures and systems to be
built by the constructor." 429 The constructor's role is to
comply with contract quality requirements during the
construction phase of the project. The guide stresses that
quality depends on total commitment and mutual understanding
by all the team members.
Donald S. Barrie and Boyd C. Paulson suggest that the
"basic elements of quality" include quality characteristics
,
quality of design and quality of conformance.* 20 Quality
characteristics are "properties that define the nature of a
429 Ibid., p. 84.
430Barrie and Paulson, p. 372
130
product for quality control purposes" such as dimension,
color, strength or temperature. 431 The quality of design
involves the tolerances or ranges for acceptable variation
from the standard specified for the product. The quality of
conformance is the extent to which the construction effort
complies with the specified standard.
The Partnering process is a new concept in the
construction industry that compliments Total Quality
Management. Partnering involves the members of the
construction team in the development of a strategy for the
purpose of avoiding disputes, fostering a cooperative spirit
and facilitating successful completion of the project.
The are several types of charts that are useful for
presenting data and understanding processes. These charts
include the cause-and-ef f ect diagram, flow chart, Pareto
chart, run (trend) chart, histogram, control chart and
scatter diagram.
Barrie and Paulson suggest that statistical quality
control is categorized as either (1) quality characteristics
that can be measured or (2) qualitative observations or
attributes.
Statistical properties such as measurements of central
tendencies (mean, mode and median) and measures of
dispersion (range, variance and standard deviation) are
important to the quality control process. The central
431 lbid.
131
tendency and dispersion are frequently documented using
control charts. Control charts are used to record the
average and range of samples, and the average and standard
deviation.
Barrie and Paulson explain that "random sampling [by
attributes] is used as an economic measure to reduce the
expense of testing every unit produced, or in situations
involving destructive testing where the element tested is
intentionally tested to failure." 432 The premise behind
random sampling is that a sample taken from a lot will
statistically represent the whole. The reliability of the
results increases as the sample size increases. The
drawback is that increasing the sample size also increases
the cost.
Public Law 100-107 created the Malcolm Baldrige
National Quality Award "to promote awareness of quality as a
key element in strengthening the position of U.S. business
in domestic and international markets." 433 The criteria for
the award emphasizes both customer satisfaction and
continuous improvement.
The first recipient of the Malcolm Baldrige National
Quality Award was the Motorola Corporation. Motorola
describes the term sigma as "a statistical unit of
measurement that describes the distribution about the mean
432 Ibid., p. 386.
433Russell, p. 1.
132
of any process or procedure." 434 Six Sigma is "a defect rate
of no more than 3.4 per million; statistically, allowing for
some variation in mean, this approaches zero
defects. . . .
,,43S
At Motorola, Six Sigma is another expression for
quality. The corporation's development of a six step
methodology was a significant step toward achieving their
milestone of Six Sigma quality. The six step process was
first developed to achieve improvement in manufacturing.
Later, the process was expanded to non -manufacturing
functions
.
Motorola's key goals are to be the best in their class
by outperforming their competition, to increase their market
share and to improve their financial standing. These
fundamental goals are shared by most civil engineering and
construction organizations. Yet, these organizations as a
whole have not placed as much priority on providing
customers with superior quality products and services. By
implementing Motorola's six steps to Six Sigma quality,
construction organizations are more likely to improve their
chance of achieving their customer, profit and market goals.
434Motorola, p. 3
435 Ibid.
133
REFERENCES
American Society of Civil Engineers. Quality in theConstructed Project . New York: American Society ofCivil Engineers, 1990.
The Associated General Contractors of America. Partnering:A Concept for Success . Washington, D.C.: TheAssociated General Contractors of America, 1991.
Barrie, Donald S., and Paulson, Boyd C. Jr. ProfessionalConstruction Management . New York: McGraw-Hill, Inc.,1992.
Buffington, Jack E., Rear Admiral, Civil Engineer Corps,United States Navy. "Quality Support to a ChangingNavy." The Military Engineer , March-April 1993,pp. 29-32.
Contracting Manual, NAVFAC P-68 . Alexandria, Virginia:Naval Facilities Engineering Command, Department of theNavy, 1987.
Deming, W. Edwards. Out of Crisis . Cambridge:Massachusetts Institute of Technology Center forAdvanced Engineering Study, 1986.
Facility Support Contract Quality Management Manual, MO- 327 .
Alexandria, Virginia: Naval Facilities EngineeringCommand, Department of the Navy, 1989.
Ishikawa, Kaoru. Guide to Quality Control . White Plains,New York: Asian Productivity Organization, 1982.
Kelso, Frank B. II, Admiral, United States Navy. "CNOStresses TQL." Navy Civil Engineer , Fall 1991/Winter1992, p. 27.
Mansir, Brian E., and Schacht, Nicholas R. An Introductionto the Continuous Improvement Process: Principles &
Practices . Falls Church, Virginia: EducationalServices Institute, 1990.
Martin, Robert D. "'Total Quality' Boosts Performance."Roads and Bridges , July 1992, p. 19.
Motorola, Inc. "Quality Renewal." Information packet fromMotorola's Malcolm Baldrige National Quality AwardOffice.
134
REFERENCES
The Ralph M. Parsons company. "Quality ImprovementFundamentals," May 1991.
K Russell, J. P. Quality Management Benchmark Assessment .
Milwaukee, Wisconsin: ASQC Quality Press, 1991.
Scherkenbach, William W. The Deming Route to Quality andProductivity . Washington, D.C.: CEEpress Books, 1991.
Scholtes, Peter R. The Team Handbook: How to Use Teams toImprove Quality . Madison, Wisconsin: JoinerAssociates, Inc., 1988.
Walton, Mary. The Deming Management Method . New York: ThePutnam Publishing Group, 1986.
135
GAYLORD S
jftftW
